Price Gouging?

[Richard in Smithville]

We just had one crazy storm in the stretch of highway that comes from Sarnia/Port Huron area. All kinds of cars and trucks were stuck on the 402 highway for as long as 30 hours while rescue crews tried to reach them. People adandoned their vehicles while they were transported to rescue centers.

Now here is the gouging. Reports are saying how towing companies have been charging as much as $400 or more to collect their cars after they had been removed from the roads. Here is one story.

http://cfjctv.com/story.php?id=609

Some one is striving to get on the naughty list.

[Ed62]

The link won't completely load for me. But taking advantage of people when they're down, is unfortunately the world we live in.

Ed

[Pappy]

I was in S Carolina when Hugo hit Charleston. Truck loads of everything from generators to ice were showing up. Generators were selling for 2-3 times their value and ice was as much as $10 a bag. The mayor had several of the scumbags arrested, loads confiscated, and gave the stuff out free.

[herb fellows]

I remember being caught in a sudden snowstorm when i was heading back to California from Reno. The sheriff put up a roadblock and told people they could not go any further without chains.
He then told us the good news; his brother in law was just off to the right there selling chains! Weren't we lucky!

[cabinetman]

After Wilma, some stores were caught "gouging" generator prices, while some only had (supposedly) available the higher priced units.

.

[woodturner]

The mayor had several of the scumbags arrested, loads confiscated, and gave the stuff out free.

While I understand the sentiment, I don't understand how that can be legal in a free society. The mayor essentially stole the vendors goods.

I'm not advocating "gouging", but in a free enterprise system driven by supply and demand, it seems reasonable to expect that commodities in short supply will command higher prices.

[Shep]

While I understand the sentiment, I don't understand how that can be legal in a free society. The mayor essentially stole the vendors goods.

I'm not advocating "gouging", but in a free enterprise system driven by supply and demand, it seems reasonable to expect that commodities in short supply will command higher prices.

I fully agree with you. While I don't like to see people being taken advantage of, when demand is high, so too will be the price.

Another arguement is that due to shortages in the region effected, some may argue that it's also harder for some companies to supply said goods, which will cause a small increase in the cost of supply. You can also argue that the value of these items has risen due to need. If you need ice badly then $10 might sound like a good value, if it means that you can preserve some refrigerated items.

Just my .02 cents

[jackellis]

I remember being caught in a sudden snowstorm when i was heading back to California from Reno.

Not today. Chain installers on I-80 are licensed by the state and they are not allowed to sell chains. We know someone who has worked as an installer. He could easily make $1,000 per day.

[Pappy]

While I understand the sentiment, I don't understand how that can be legal in a free society. The mayor essentially stole the vendors goods.

I'm not advocating "gouging", but in a free enterprise system driven by supply and demand, it seems reasonable to expect that commodities in short supply will command higher prices.

These were not legal, licensed vendors. They were individuals looking to make a fast buck off others' misfortunes.

[Cochese]

These were not legal, licensed vendors. They were individuals looking to make a fast buck off others' misfortunes.

Which is legal. Stores cannot charge more, but individuals can. At least here.

If it gets really cold here and I want to cut down my trees and offer the wood for $400 a cord, I can.

I think. I know I couldn't charge $16000 though.

[herb fellows]

While I understand the sentiment, I don't understand how that can be legal in a free society. The mayor essentially stole the vendors goods.

I'm not advocating "gouging", but in a free enterprise system driven by supply and demand, it seems reasonable to expect that commodities in short supply will command higher prices.

You say you don't advocate gouging, but the very definition of gouging is taking advantage of people in an unusual situation, especially one created by a disaster.
Selling diamonds for a high price is not gouging; selling gas masks for a high price when a gas attack is imminent is.

[woodturner]

I know I couldn't charge $16000 though.

Do you mean that local laws would prohibit that, or just that no one would pay that much?

[woodturner]

You say you don't advocate gouging, but the very definition of gouging is taking advantage of people in an unusual situation, especially one created by a disaster.

Fair point, gouging is not a good term, since it is subjective.

Selling diamonds for a high price is not gouging; selling gas masks for a high price when a gas attack is imminent is.

Disagree with you on that. When people use the term "gouging", they seem to mean the seller is making an excessive profit. So, diamond sales are always gouging, but if the seller is paying $1,000,000 for each gas mask, selling them mask for $1,000,001 would not be gouging.

I got curious and did some digging. I understand the wiki is not reliable, but it has some information that seems reasonable:
"As a criminal offense, Florida's law[2] is typical. Price gouging may be charged when a supplier of essential goods or services sharply raises the prices asked in anticipation of or during a civil emergency, or when it cancels or dishonors contracts in order to take advantage of an increase in prices related to such an emergency. The model case is a retailer who increases the price of existing stocks of milk and bread when a hurricane is imminent. It is a defense to show that the price increase mostly reflects increased costs, such as running an emergency generator, or hazard pay for workers." (emphasis added)price gouging

So, by that description, price gouging is charging more for previously purchased goods during a civil emergency. So my gas mask example would not be price gouging under Florida law, while the diamond example would be gouging only if there were a civil emergency, perhaps a shortage of justices of the peace

[jussi]

Disasters bring out the worst in some people. I believe I read similar stories after Katrina.

[Bruce Cohen]

Richard,

This time the solution is a couple thousand feet of det cord and 2-5 Lbs. of C-4.

Don't you just love the goodness that Christmas brings out in your fellow Canadian.

Bruce