00:01
What is the purpose of price gouging laws? the purpose is to protect consumers from being exploited during times of crisis.
00:32
They are intended to help the general public, particularly those who are most vulnerable and may not have the means to afford essential goods and services if prices are excessively inflated.
00:48
So specifically, it protects against inflation or high prices.
00:52
Price gouging involves raising the price of consumer goods and services after an emergency has been declared.
01:38
So, for example, let's say that there's a hurricane coming.
01:45
So we know that people will try to stock up on food and other necessities.
01:51
So then sellers will take advantage of this by raising prices.
01:55
But the law will make it so they can only raise it by a certain amount, for instance.
02:20
And these would differ based on what state you're in.
02:27
So that helps protect the consumer.
02:30
So retailers have less ability to take advantage of consumer panic during these situations.
02:48
Otherwise, it could lead to steep price increases...