[co-author: Stephanie Kozol]*
On November 7, Virginia Attorney General (AG) Jason Miyares reminded suppliers that the current state of emergency caused by wildfires triggered Virginia’s anti-price gouging statutes, which prohibit businesses from raising prices to “unconscionable” levels during an emergency.
On November 6, Governor Youngkin declared a state of emergency due to several wildfires threatening public health and safety across the state. Youngkin singled out wildfires in Quaker Run and Tuggles Gap due to their severity, with those fires burning more than 9,400 and 1,150 acres of land, respectively. Following the declaration, Miyares reminded suppliers that the declaration triggered Virginia’s Post-Disaster Anti-Price Gouging Act, and invited consumers to make complaints to the OAG.
Virginia’s Post-Disaster Anti-Price Gouging Act prohibits a supplier from making offers of, or successfully, selling, leasing, or licensing “necessary goods and services” at an “unconscionable price” following a declared state of emergency. Items and services covered by these protections include, but are not limited to, water, ice, food, generators, batteries, emergency supplies, housing, lodging, transportation, home repair materials and services, and tree removal services.
However, not all price increases during a disaster are “unconscionable.” Factors considered in determining whether the price increase is unconscionable include whether the price increase is due to additional supplier costs, or seasonal or holiday adjustments, and whether the price before the disaster “grossly exceeded” the price charged during the 10-day period before the disaster.
Why It Matters
Suppliers in all states sending goods to Virginia should carefully monitor pricing and keep an eye on potential extensions of the state of emergency.
*Senior Government Relations Manager