CHARLOTTE, N.C. — With gas prices at their highest since 2008, many people are on alert for signs of price gouging. The nationwide price surges are due to the Russian war on Ukraine and sanctions spoil Russia's ability to export crude oil, according to AAA. But if you think a business is taking advantage of the situation to hike up prices, what should you do?
First, it's important to know how to identify the problem.
What is price gouging?
Price gouging takes place specifically when the state is experiencing a natural disaster, state of emergency, or abnormal market disruption. North Carolina's price gouging law goes into effect when declared or proclaimed by the state's governor, and applies to all levels of the supply chain from the manufacturer to the retailer and everything in between.
North Carolina law (Chapter 75-38) defines price gouging as charging “a price that is unreasonably excessive under the circumstances.” There is no set price or percentage increase defined in the law.
The price gouging law is currently in effect in relation to the COVID-19 pandemic.
How do you report price gouging?
You can report price gouging in one of the following ways:
- File a complaint online with the North Carolina Department of Justice
- Call 1-877-5-NO-SCAM or 919-716-6000.
When a state of emergency is not in place, the price gouging statute in North Carolina would not be in effect -- but that doesn't mean you can't report concerns. If this is the case, contact 1-877-5-NO-SCAM or report concerns online at ncdoj.gov/complaint.
RELATED: Charlotte gas station that charged $9.99/gallon during pipeline shutdown sued for price gouging
What information needs to be reported?
When filing a complaint regarding price gouging, it's helpful if you can provide specific details about the product or service such as type, brand, model number and more. Additionally, complaints can include explanations given by businesses, price comparisons and receipts.
What happens next?
The North Carolina Attorney General's office investigates and enforces the state's price gouging law and has won thousands of dollars in refunds and penalties in the process. Price gougers can face civil penalties of up to $5,000 for each violation, according to NCDOJ.
