Gov. Abbott’s disaster declaration triggers price gouging rules

Gov. Greg Abbott signed a disaster declaration in multiple counties at a noon press conference Thursday. The declaration, made in response to a massive and ongoing winter storm, triggers price gouging rules and makes it illegal to excessively hike up prices on vital good and services. Abbott said the storm is one of the “most significant icing events that we have had in the state of Texas in several decades.”

One year ago, Texas experienced an unprecedented winter storm that caused millions to lose power and over 200 people’s deaths. Weather experts predict this year’s storm will be shorter and less severe. So far, the state’s power grid has remained reliable. Energy experts said there should be plenty of power to keep the grid stable until the weather warms in the next several days. Price gouging occurs when a person or business takes advantage of a disaster declared by the governor or president by selling, demanding or leasing “fuel, food, medicine, lodging, building materials, construction tools, or another necessity at an exorbitant or excessive price,” according to the Texas Office of Attorney General. So, what constitutes an exorbitant or excessive price? “High prices alone do not mean price gouging has taken place,” according to the Attorney General Ken Paxton’s Office. Authorities would need to investigate a report of price gouging. Paxton’s office has the authority to investigate and prosecute price gouging.