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Attorney General's News Release
July 21, 2006
Nixon warns against price gouging in wake of St. Louis-area storms
Jefferson City, Mo. — Attorney General Jay Nixon said today he will not tolerate price gouging of Missourians in areas hit hard by Wednesday's storms. Nixon's office is looking into complaints from the St. Louis area about price gouging of hotel rooms, ice and bottled water.
“At a time when several hundred thousand Missourians are without power and suffering from the summer heat, it is reprehensible that anyone would try to exploit them by charging outrageous prices for necessities,” Nixon said. “We will look into any and all reports we receive of price gouging and take appropriate action.”
To report price gouging to the Attorney General's Office, submit a complaint form online or call the Consumer Protection Hotline at 1-800-392-8222.
Nixon's office promulgated price-gouging regulations in the aftermath of flooding along the Missouri and Mississippi rivers in 1993. Those regulations state that:
It is an unfair practice for any person in connection with the advertisement or sale of merchandise to —
- (A) Take advantage of a person's physical or mental impairment or hardship caused by extreme temporary conditions, and charge a price substantially above the previous market price of the merchandise in seller's trade area;
- (B) Charge within a disaster area an excessive price for any necessity; or
- (C) Charge any person an excessive price for any necessity which the seller has reason to know is likely to be provided to consumers within a disaster area.
Those who violate the price-gouging provisions can face penalties of up to $1,000 per violation under Missouri consumer protection laws. Nixon took action against eight gas stations in 2005 after Hurricane Katrina and against 48 stations in 2001 after Sept. 11 over allegations of price gouging. The stations paid almost $69,000 total to the state as a result of Nixon's investigation.
Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).
All media inquiries should be directed to Press Secretary John Fougere.
E-mail Phone: 573-751-8844 Fax: 573-751-5818