Imagine needing water after a hurricane, only to find stores charging exorbitant prices. That's price gouging – unfairly hiking up the cost of essential goods and services during emergencies or periods of high demand. It's a practice that preys on vulnerability and can have devastating consequences.
While simple supply and demand might suggest higher prices are natural, price gouging goes beyond that. It's about exploiting desperate situations for excessive profit. Legal definitions vary by state, but generally, price increases are considered gouging if they are significantly higher than pre-disaster or pre-emergency prices and not justifiable by increased costs.
Think of it this way: a reasonable price increase to cover increased shipping costs is understandable. But a 500% markup on bottled water during a flood? That's where ethical boundaries are crossed and communities suffer. Understanding what constitutes price gouging helps us identify and report it, protecting ourselves and others from this unethical practice.
