Kevin Brancato (Truck and Barter) posts on Virginia's anti-"price gouging" law. Apparently the law reads (in part),
"During any time of disaster, it shall be unlawful for any supplier to sell, lease, or license, or to offer to sell, lease, or license, any necessary goods and services at an unconscionable price within the area for which the state of emergency is declared. Actual sales at the increased price shall not be required for the increase to be considered unconscionable."
Apparently inspired by the aftermath of Hurricane Isabel, this would limit price increases following a natural disaster to those justified on the basis of cost increases. Brancato also links to a column on the same topic by Walter Williams. Williams points to the possibility that price controls imposed under this law will impede recovery efforts in a stricken community.
I posted on post-Isabel price-gouging last September (linking to some other useful resources): "The pros and cons of price gouging".
Comments