Great Lakes Wire

Michigan Attorney General Dana Nessel has joined forces with 16 other attorneys general to urge Congress to enact federal legislation against price gouging. The coalition sent a letter to the leadership of the U.S. House of Representatives and Senate, advocating for a nationwide prohibition on this practice to fill enforcement gaps at the state level and protect consumers and small businesses.

Currently, 40 states have laws addressing various aspects of price gouging. The letter emphasizes that these statutes demonstrate a national consensus against exploiting consumers by inflating prices for essential goods and services following disasters.

The coalition contends that a federal ban would benefit consumer-facing retailers, particularly small businesses, who often face reputational and legal challenges due to disaster-induced price hikes. Such issues frequently occur higher up in the supply chain, beyond the reach of some state laws. The letter outlines four key advantages of implementing a federal price gouging ban: pausing panic-driven pricing decisions, preventing inefficient pricing during disasters, discouraging hoarding, and restraining pricing for products with limited competition.

"Price gouging is an unscrupulous practice that takes advantage of customers during their most vulnerable moments," said Nessel. "We should all be able to agree that consumers need to be supported, not exploited, in the aftermath of a disaster."

Attorney General Nessel has been active in protecting consumers from price gouging. In July, she filed a lawsuit against tree service companies accused of deceiving customers seeking storm clean-up services. She also reached compliance agreements with Novi Hilton and pharmacies suspected of such practices. However, Michigan's current Consumer Protection Act only allows action when individual businesses charge excessive prices compared to others.

Recently, Nessel participated in discussions with Michigan lawmakers about strengthening state tools against price-gouging through Senate Bills 954-956. These bills aim to address price increases on consumer goods, emergency supplies, lodging, and energy products like gasoline or propane during emergencies or market disruptions.

Joining Attorney General Nessel in urging Congress are attorneys general from California, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon Pennsylvania Vermont and the District of Columbia.