On Very Shaky Ethical Ground – In Texas, Price Gouging During Disasters Is Illegal
In Houston, as millions suffered power and water outages, food shortages and subfreezing temperatures, another problem confronted families: price hikes.
Steep increases in the price of food, gas and fuel have been reported across Texas. And as millions of Texans lost power, exorbitant prices were being asked for hotel rooms with power, with some climbing to US$1,000 a night.
As a scholar who has researched disaster ethics, I know this is not uncommon in such circumstances. It follows a pattern: Disaster creates a scarcity of basic necessities; retailers and providers respond by sharply raising the price tags on sought-after commodities.
Then comes public outrage and claims of price gouging – a practice deemed illegal in 36 U.S. states, including Texas, in times of disaster.
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