Have you ever seen a product skyrocket in price after a hurricane or during a global shortage? That's likely price gouging. Understanding what it is, and how to spot it, is crucial.
Price gouging occurs when sellers dramatically increase prices of essential goods or services during or immediately after a crisis. Think of water bottles costing $20 after a natural disaster or hand sanitizer jumping tenfold during a pandemic. It exploits vulnerable consumers who desperately need these items.
While the line between legitimate price increases due to supply and demand and exploitative gouging can be blurry, the intent is often the key. Are prices rising proportionally to increased costs, or are they simply being inflated to take advantage of a desperate situation?
Many jurisdictions have laws against price gouging, so research your local regulations. If you suspect it, report it to your state attorney general or consumer protection agency. Protecting yourself and others from predatory pricing is everyone's responsibility. Stay informed, stay vigilant, and help ensure fair pricing during times of need.
