Gov. Easley Signs Law to Crack Down on Price Gouging

Gov. Mike Easley today signed into law House Bill 1231, "An act to protect consumers from extreme pricing practices." The legislation was co-sponsored by state Rep. Arthur Williams (D-Beaufort).

"Those who unscrupulously take advantage of a tragedy threaten North Carolina's consumers and jeopardize the state's economy," said Easley. "This new law will help us to quickly and effectively investigate and prosecute businesses aiming to capitalize on the misfortune of others."

The new law broadens the prohibition on price gouging to include times when the state might suffer "abnormal market disruptions." Previously, state officials had authority to act only if there was a disaster declared by the governor. The state attorney general now has the clear authority to investigate allegations of price gouging all the way up the supply chain, from the retail establishment to the wholesalers and ultimately, in the case of gasoline, to the oil manufacturers and refiners.

"This new law makes it clear that price gouging in North Carolina is illegal, whether at the pump or from the wholesale supplier," said Attorney General Roy Cooper. "If someone is looking to make a quick buck by charging unreasonable or excessive prices, we will find them and make them stop."

The governor now has the authority, under circumstances similar to Hurricane Katrina, to make an "abnormal market disruption" finding. That will allow allegations of price gouging to be fully investigated and prosecuted regardless of whether a state of disaster has been declared for North Carolina, as long one has been declared at the federal level that has an impact on the state.

"North Carolinians should not be victimized by the greedy who exploit tragedy," said Rep. Williams. "This law will make sure those who try are tracked down and punished."

The North Carolina Attorney General's Consumer Protection Division offers help to those who might be victims of price gouging. They can find information about filing a complaint by calling toll free at 1-877-5-NOSCAM (1-877-566-7226) or on the web.