What is price gouging, and why is it happening in SC after Helene?

Reports of possible price gouging are spreading across the Carolinas, and residents struggling to bounce back from Tropical Storm Helene’s devastation are not happy about it.

One user shared a video on Facebook of a gas station charging $10 per gallon of gasoline. Although this incident occurred in Georgia, other posts by locals are warning residents to avoid being taken advantage of during these difficult times.

“Please, everyone with power, report this price-gouging a$$hole owner in Greenville. Put them out of business,” one Greenville resident posted on Facebook.

Here’s how you can report price gouging to prevent your family, loved ones, and neighbors from being victims of unfair business practices.

State price gouging law now in effect due to Helene

SC Attorney General Alan Wilson announced Sept. 26 the state’s anti-price gouging law was in effect since Gov. Henry McMaster declared a state of emergency due to Helene. State law SC §39-5-145 reads it is unlawful to “rent or sell or offer to rent or sell a commodity at an unconscionable price.” The law will remain in effect until the declaration expires or is terminated.

“We can expect normal price increases, but we may see businesses and individuals looking to unfairly take advantage of the situation through price gouging of things like hand sanitizer, cleaning supplies, toilet paper, and other commodities as defined by the statute. By our law , that’s a criminal violation and an unfair trade practice,” Wilson said.

What is price gouging?

Price gouging is the act of businesses raising prices to levels deemed unfair by consumers. It is not uncommon, and there is no set rule for it. Two examples of price gouging that are considered unfair are the rising costs of Epipens and Uber.

Why do businesses price gouge during natural disasters?

During natural disasters, it is common to witness price gouging of essential items. To compensate for the loss of sales in non-essential items, retailers may increase the prices of essential items to retain their business. As a result, the supply quickly becomes limited, hiking the price up even more due to high demand.

According to Harvard Business School, “When demand reaches such high levels, it can be hard to tell the difference between supply and demand and price gouging. Policymakers and business professionals have historically had mixed opinions on whether businesses should raise prices during a crisis for this reason.”

Items in high demand during a natural disaster

∎ Batteries

∎ Bottled water

∎ Generators

∎ Personal hygiene items

∎ Plywood

∎ Non-perishable food

∎ Medical supplies

∎ Emergency supplies

∎ Shelter

What is not considered price gouging?

It is not illegal for prices of goods and services to undergo normal market fluctuations based on supply and demand. In fact, state law outlines this: “A price increase that reflects the usual and customary seasonal fluctuation in the price of the subject essential commodity or the rental or lease of a dwelling unit or self-storage facility is not a violation of this section. ”

However, businesses and individuals who are using a time of need to price gouge on hand sanitizer, cleaning supplies, toilet paper, and other commodities as defined by the statute are participating in an unfair trade practice ― a criminal violation.

If you are ready to report a business for price gouging, you must also be prepared for the hard truth that your report may not make it into court.

“We wish to emphasize, as we have seen in the past, that price gouging under the current law is difficult to prove, even substantial price increases. What might seem large to the public may not be illegal in court,” Wilson said.

How can I report price gouging?

∎ No. 1: Note the time, place, address, and name of the business.

∎ No. 2: Note the price you paid.

∎ No. 3: Note any prices nearby and get the same information on those businesses.

∎ No. 4: Take pictures that identify the business, along with the price.

∎ No. 5: Provide your name and contact information.

Price gouging reporting form

To report a possible price gouging violation, contact [email protected] or call 803-737-3953. You can also fill out this form.

What penalties will price gougers face?

Those in violation of the state’s price gouging law are guilty of a misdemeanor. Upon conviction, individuals will be punished by a fine of up to $1,000, up to 30 days in jail, or both.

Nina Tran covers trending topics for The Greenville News. Reach her via email at [email protected].