Men on a four-wheeler pass a storm damaged house along Mill Creek in the aftermath of Hurricane Helene on September 30, 2024 in Old Fort, North Carolina. According to reports, at least 90 people have been killed across the southeastern U.S., and millions are without power due to the storm, which made landfall as a Category 4 hurricane on Thursday. The White House has approved disaster declarations in North Carolina, Florida, South Carolina, Tennessee, Georgia, Virginia and Alabama, freeing up federal emergency management money and resources for those states. (Photo by Sean Rayford/Getty Images)
North Carolina Attorney General Josh Stein announced Tuesday that his office received more than 70 price gouging complaints in the aftermath of Hurricane Helene.
Stein said reports about fuel, groceries, and hotel rooms each make up about a third of the total. The North Carolina Department of Justice had issued three civil investigative demands to businesses as of Tuesday morning.
“Unfortunately, there are some bad actors who are out there trying to take advantage of this crisis to make an extra buck off of people’s desperation,” Stein said at a news conference Tuesday. “Charging too much for any needed good or service during an emergency is against the law in North Carolina.”
Residents reported on Facebook that some gas stations in western North Carolina were charging about $10 per gallon in the storm’s wake. Another post cited hotel room prices of more than $500 per night.
North Carolina’s price gouging law takes effect after natural disasters like Hurricane Helene. It forbids companies from artificially raising prices to profit from emergencies. Penalties include a fine of up to $5,000 per violation as well as refunds to customers who were overcharged.
Duke law professor Sara Sternberg Greene said in an interview that price gouging laws are “key and really important for consumers.”
“Attorney General Josh Stein’s office is doing a good job trying to get the word out and asking people to complain,” Greene said. “I do think that sometimes they can take a little while for them to have the impact.”
Greene said the main challenge is often consumer awareness of anti-price gouging laws. Many residents are focused on their immediate safety and that of their property as opposed to seeking legal remedies.
She noted that businesses can still raise prices to match dwindling supply and in response to direct impacts on their ability to operate from the storm so long as they provide clear notice to consumers.
“If you look at different price gouging laws, I think this is one that is well-written and it provides protections for consumers, but also for businesses,” Greene said.
For western North Carolina residents, more legal help should be on the way. The North Carolina Supreme Court ruled Tuesday that out-of-state attorneys may provide pro bono assistance to storm victims.
Attorneys will be able to help indigent residents navigate consumer protection cases like those arising from price gouging. They may also help with FEMA applications and any other legal matters swept up in the storm.
The price gouging prohibition will remain in effect in counties where a disaster has been declared until the conclusion of the declaration or 45 days after it began, whichever comes first.
Consumers can report price gouging to the state’s toll-free consumer protection hotline at 1-877-5-NO-SCAM. They can also file complaints at NCDOJ.gov/pricegouging.
Legal Aid of North Carolina has also established a disaster assistance website that includes numerous links to relief organizations and a toll-free telephone helpline though which many North Carolinians can access free legal advice. Visit Tropical Storm Helene Disaster Assistance – Legal Aid of North Carolina (legalaidnc.org) to learn more.