Texas Cracks Down on Disaster Price Gouging – Are Businesses Breaking the Law?

State Officials Issue Stern Warning Ahead of Hurricane Season

Texas Attorney General Ken Paxton has issued a strong reminder to businesses as hurricane season approaches: Price gouging during emergencies won't be tolerated. The warning comes as memories of past disasters—and reports of opportunistic price hikes—remain fresh in Texans' minds.

What Constitutes Illegal Price Gouging in Texas?

• Essential Goods & Services: Food, water, fuel, lodging, and medical supplies
• Price Threshold: Any "exorbitant or excessive" increase during declared disasters
• Time Frame: Applies from disaster declaration until 30 days after

Recent Cases That Made Headlines

During Winter Storm Uri in 2021, some hotels reportedly charged $1,000 per night for rooms that normally cost $100. Gas stations faced scrutiny for selling water at 500% markups. These cases led to millions in settlements under Texas' Deceptive Trade Practices Act.

How Texans Can Fight Back

1. Document Everything: Take photos of price tags and receipts
2. Compare Prices: Note what items cost pre-disaster
3. Report Immediately: Contact the AG's Consumer Protection Division

Businesses Walk a Fine Line

While most understand what blatant gouging looks like, some cases remain controversial. When supply chain disruptions legitimately increase costs, businesses argue they're simply adjusting to market realities—not exploiting disasters.

What Do You Think?

• Should price caps be implemented before disasters strike to prevent gouging?
• Is it fair to punish businesses when their costs genuinely increase during emergencies?
• Would you pay 5x normal price for water if it meant saving your family during a crisis?
• Are current penalties ($20k per violation) enough to deter bad actors?
• Should citizens be allowed to sue gougers directly for damages?