by Peter Mertz
DENVER, the United States, Sept. 7 (Xinhua) -- As natural disasters increase, so do incidents of price gouging, with more and more state governments scrambling to enact laws to protect consumers.
Price gouging "occurs when companies raise prices to unfair levels," a 2020 Harvard Business report said, noting that "there's no rule for what qualifies as price gouging, but it's not an uncommon occurrence."
Ahead of the curve is California, where Governor Gavin Newsom signed anti-price-gouging legislation last year, joining some 39 states and territories with similar laws, including Guam, Puerto Rico, the U.S. Virgin Islands and the District of Columbia, according to the National Conference of State Legislatures (NCSL).
"In most states, price gouging is set as a violation of unfair or deceptive trade practices law," the NCSL said in May.
But not yet in Nevada, across the border from California, where price-gouging prohibition signed by Governor Steve Sisolak in June doesn't take effect until next month -- thereby limiting the government from curtailing the shady practice, which occurred after the Caldor Fire burned down 216,358 acres (87,557 hectares) with 48 percent contained as of Monday night.
NICK OF TIME
California's new law was just in time for residents of South Lake Tahoe, on the California-Nevada border, where 22,000 were given mandatory evacuation orders last week as the Caldor Fire expanded dramatically.
When South Tahoe's 27,567 residents suddenly fled, gridlock conditions were reported for days with roads and highways jammed by vehicles.
Even on Monday when the Caldor Fire was no longer threatening Lake Tahoe, the highest elevation alpine lake in America, a number of price-gouging incidents were reported, with one angry resident posting a screenshot of a 1,535-U.S.-dollar rental rate for a minivan on Twitter.
As the blaze raced toward South Lake Tahoe, one riding-share company quoted a fee of more than 1,500 dollars, about eight times the going rate, to be transported from the smoke-choked ski resort at Heavenly Valley to the safety of Reno-Tahoe International Airport.
Across the region, Uber and Lyft jacked up their rates, but then said in statements that "price jumps triggered automatic caps as demand soared around South Lake Tahoe amid emergency evacuations."
Lyft said it was "reviewing and adjusting fares for certain riders who were impacted in the region."
In nearby Nevada, businesses were also explaining rampant rate increases.
The Montbleu Resort, casino and spa rates went from 120 dollars to 450 dollars per night "to deter tourists from traveling near the wildfire and to keep rooms available for evacuees," Tim Tretton, the resort's vice president-general manager, said in a statement.
Tretton said the company planned to pay back the difference to those who had booked at the higher costs and "did not and do not plan to collect on these rates."
Another Nevada hotel-casino outside the evacuation order zone advertised a two-night stay for 1,090.72 dollars, almost four times the midweek rate offered a day earlier, AP reported.
INCIDENTS RISING
On the other side of the country in New York, price-gouging hit headlines this week as a man was sentenced for three years of probation for hoarding COVID-19 face masks and price gouging.
In a landmark decision, Imran Selcuk, 35, of Troy, was sentenced to three years of probation last Thursday. He admitted that in March 2020, he had purchased around 100,000 KN95 face masks and 25,000 surgical-style face masks for 1 dollar per mask and 50 cents per mask respectively, and sold then for as much as 35 dollars each.
Despite the pandemic, the world has witnessed a tenfold increase in the number of natural disasters since the 1960s, according to a United Nations report in March.
"Data captured between 1900 and 2019 reveal an increase from 39 incidents in 1960 to 396 in 2019," the report noted.
"Natural disasters occur both seasonally and without warning, subjecting the nation to frequent periods of insecurity, disruption, and economic loss," the U.S. Department of Homeland Security stated in May, listing "winter storms, floods, tornados, hurricanes, wildfires, earthquakes, or any combination thereof."
Thus far in 2021, America's West has seen more record wildfires and mudslides, but the East Coast has been hammered by storm-induced flooding, as officials are playing hardball with price gouging.
"New Yorkers should be on the lookout for fraudsters who use natural disasters to take advantage of consumers," New York Attorney General Letitia James said in "An Alert" last week.
As Hurricane Henri left the region, James said: "It is illegal for retailers or vendors to charge grossly excessive prices for essential goods and services during a state of emergency."
"I urge anyone who believes they may have been a victim of price gouging to contact my office immediately," she added.
Three weeks ago, as Tropical Depression Fred left Florida, Attorney General Ashley Moody activated the state's price-gouging hotline after Governor Ron DeSantis declared a state of emergency in 23 counties, Local 10 News reported.
Moreover, last month in Texas, following the severe weather and flooding from Hurricane Hanna, Attorney General Ken Paxton warned that "vendors are prohibited from charging exorbitant prices for necessities such as drinking water, food, batteries, generators, towing, clothing, medical supplies, lodging, repair work and fuel during and after the crisis."
New York was the first state to enact price-gouging laws in 1979 after increases in home heating oil prices during the winter of 1978-1979, according to the Cato Institute (CI).
James' office successfully prosecuted another COVID-related price-gouging case last year when Tae Kyong Kim, 49, of College Point, and Jung Soo Lee, 61, were charging 10 times the cost of an N95 face mask.
"The individuals charged in this case put profits over the health of their fellow New Yorkers by charging exorbitant fees for the face masks that could save people's lives," NYPD Commissioner Dermot Shea said in a statement.
"These arrests should serve as a warning: The NYPD is vigilant in investigating those who prey on New Yorkers and attempt to financially benefit during the pandemic."
Just three states have passed similar anti-price-gouging laws in the 1980s: Hawaii in 1983, and Connecticut and Mississippi in 1986, according to the CI. Enditem
