Gas Price Gouging Laws in Florida

Laws prevent oil companies from making excess profits in emergencies.

When a state of emergency has been declared in Florida, there are consumer protection laws in place to prevent businesses from raising their prices unrealistically. The laws have been created to protect consumers, but consumers must help the authorities by reporting suspected price gouging so that appropriate actions can be taken. It is important to know the law and how to follow through when you need to make a report.

Consumer Protection

Chapter 501 of the Florida Statutes deals with consumer protection. Section 160 specifically defines price gouging, and sets the penalties given to businesses who do so. The disputed price is compared to what the same company charged the same fuel during the 30 days prior to an emergency being declared, and if an extreme difference is found, further investigation ensues. Consumers who suspect price gouging are encouraged to contact the Attorney General's Price Gouging Hotline at 866-966-7226. If necessary, you will be told where to take any evidence you have collected, or instructed in faxing or mailing it to the Attorney General's office.

Determining Price Gouging

There are many reasons for prices of commodities such as fuel to increase legitimately. It may be more difficult for deliveries to be made, or processing plants may have been put on standby. These are just two common examples among many. Any anticipated increases must be calculated and compared to market value in the affected the region. Disparities after these costs have been canceled out are then calculated and a decision is made by the State Attorney's office.

Price Gouging Applies to Essential Commodities

Fuel is not the only thing protected under price gouging laws. All essential commodities are included, and that means food, housing, water, fuel, building materials, and anything else that is necessary to the efficient cleanup and reorganization of the region. Price gouging makes it more difficult to pick up the pieces after a disaster, and businesses who are trying to take everything they can are actually guilty of slowing down the efforts of the aftermath by making their products too expensive for the people who need them to be able to buy.

Price Gouging and Unlicensed Businesses

After a natural disaster, it seems as though people come out of the woodwork to sell high-priced repairs, materials and fuel. To help protect consumers, any person or business accused of price gouging who does not possess a tax license may be shut down and the person detained during the inquiry into the price gouging. This detainment can only be for a reasonable amount of time, and only while a determination is being made into the accusation. Churches, charitable organizations and civic groups are exempt from licensing requirements during the state of emergency, but there are no exceptions to the statute prohibiting price gouging.

References

• Office of the Attorney General of Florida: Price Gouging FAQ
• Florida Department of Agriculture and Consumer Services: Price Gouging
• 2009 Florida Statutes: Statute 501