AG: Price gouging being watched

Louisiana Attorney General James D. “Buddy” Caldwell issued a warning that state price gouging laws are in effect during anticipated and actual flooding from the Mississippi River, Atchafalaya River and other inland bodies of water.

Federal law prohibits the sale or leasing of commodities, dwelling units or storage facilities at amounts that grossly exceed average prices of goods or services in a given market up to 30 days before the declaration of a state of emergency and during the disaster event.

Many states have their own anti-gouging ordinances. Louisiana law prohibits raising prices above pre-emergency levels when there is a national or regional market commodity shortage.

Caldwell spokeswoman, Laura Gredes, explained that gasoline distributors, hotels, motels, and retailers are prohibited during the emergency unless they incur a spike in the wholesale price of doing business. Price gouging in Louisiana carries both civil and criminal penalties.

A current state of emergency for Louisiana was established on April 28 and will continue to May 28. It can be extended or terminated sooner than the announced end date.

Gredes said that if price gouging is suspected, consumers should call (800) 351-4889 to report the situation.

In the meantime, the U.S. Department of Agriculture issued notice for Louisiana farmers who have or will experience crop damage related to current Mississippi River and Atchafalaya River flooding that they are eligible for crop assistance insurance.

USDA Secretary Tom Vilsack and Federal Emergency Management Agency Administrator Craig Fugate released a joint statement Saturday through Louisiana Department of Agriculture and Forestry Commissioner Mike Strain that said all crop insurance provisions would be honored, although a national disaster declaration had not yet been made.