Disaster Officials Warn Against Price Gouging
Release Date: June 1, 2001
Release Number: 1367-24
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Davenport, IA -- After surviving a natural disaster, already vulnerable victims also may become targets of predatory practices, such as price gouging.
Price gouging occurs when a supplier marks up the price of an item more than is justified by his actual costs. Disaster victims are particularly susceptible because their needs are immediate and they have few alternatives to choose from.
Because of this, the state of Iowa has a separate section in the Code of Iowa addressing the subject. While the code goes into great detail, it can be simply summarized by the following quote from the law:
"The charge of excessive prices for merchandise needed by victims of disasters is hereby declared to constitute an unfair practice."
Iowa code also says that price gouging will be presumed if there is a substantial increase in the price of an item immediately following a disaster.
There are 19 counties covered by President Bush's disaster declaration for Iowa. Anyone suspecting instances of price gouging in those counties should report it to the Iowa Consumer Protection Division at (515) 281-5926.
The 19 Iowa counties, which are designated disaster areas, are Allamakee, Buchanan, Calhoun, Clayton, Clinton, Des Moines, Dubuque, Henry, Humboldt, Jackson, Lee, Louisa, Muscatine, Palo Alto, Ringgold, Sac, Scott, Wapello and Webster.
Last Modified: Monday, 27-Oct-2003 10:17:20