Price Gouging During an Abnormal Disruption
Information for Consumers
When a disaster occurs, some people may attempt to charge exorbitant prices for essential consumer goods and services. As of June 1, 2007, Oregonians are protected by a law that protects consumers from certain unconscionably excessive prices during a declared abnormal disruption of the market. An abnormal disruption of the market must be declared by the Governor, which may be attributed to a disaster that occurred in Oregon or outside Oregon.
If you believe you encountered an instance of a person taking advantage of a disaster - after the Governor declared an abnormal disruption of the market in your county - please call or write to the Attorney General. [Note: the link to the Price Gouging Reporter will only be active during a declared abnormal disruption of the market.] Please only file complaints through the Price Gouging Reporter link if the Governor declared an abnormal disruption of the market in the area in which you believe price gouging occurred. All other consumer complaints should be filed through the standard consumer complaint form.
Information for Businesses
The law prohibits certain merchants and wholesalers from offering to sell, or from selling, essential consumer goods or services for an amount that represents an unconscionably excessive price during a declaration by the Governor of an abnormal disruption of the market - in the affected geographical area. The Governor is provided the authority to make such a declaration under the law when she or he has determined that a human created or natural event or circumstance has occurred that has caused essential consumer goods or services to be not readily available. (A declaration of a State of Emergency does not automatically activate the law.)
Essential consumer goods and services are goods or services that are or may be bought or acquired primarily for personal, family or household purposes - such as residential construction materials or labor, shelter for payment such as a hotel room, food, water or petroleum products such as gasoline or diesel fuel - and are necessary for the health, safety or welfare of consumers.
The law sets parameters for determining unconscionably excessive prices, and makes charging unconscionably excessive prices subject to enforcement actions by the Attorney General or district attorneys as a specific violation of the Oregon Unlawful Trade Practices Act. The law restricts certain price increases in geographical areas affected by a declaration of an abnormal disruption of the market to a prima facie level of 15%, unless particular cause for those increases exists. Under the law, price increases in excess of the prima facie level of 15% may be deemed by a court to be unconscionably excessive, unless the price increase in question is exempt. The law exempts various price increases, including:
- Increases attributable to additional costs imposed by suppliers (e.g., exterior market costs, etc.);
- Increases attributable to additional costs necessarily incurred in procuring the essential consumer goods or services immediately prior to or during the declaration (e.g., flying-in supplies, etc.);
- Increases attributable to increased internal costs or expenses related to the declaration (e.g., overtime, additional staff, security, distribution, etc.); and
- Increases attributable to increased costs unrelated to the declaration (e.g., scheduled price or cost increases, etc.).
Pursuant to the law, the Governor's proclamation must include the geographical area covered by the declaration and the date and time at which the abnormal disruption of the market commenced. The Governor may extend the declaration for additional 30-day periods by subsequent declarations that the abnormal disruption of the market continues to exist. The declaration will terminate automatically 30 days after the date on which the declaration is made unless the Governor extends the declaration in accordance with the law, or unless the Governor or the Legislative Assembly terminates the declaration sooner.
If you believe you encountered an instance of a person taking advantage of a disaster - after the Governor declared an abnormal disruption of the market - please call or write to the Attorney General. [Note: the link to the Price Gouging Reporter will only be active during a declared abnormal disruption of the market.] Please only file complaints through the Price Gouging Reporter link if the Governor declared an abnormal disruption of the market in the area in which you believe price gouging occurred.
