Gov Sanders – Price Gouging Ban in Effect After Arkansas Storms

Arkansas’ price gouging law is now active following Governor Sarah Huckabee Sanders’ April 2 declaration of a state emergency through Executive Order 25-07.

Arkansas Attorney General Tim Griffin wants residents to be on guard for storm recovery scams, especially those involving "quick" repair jobs.

“Unfortunately, unscrupulous people may already be preying upon our neighbors,” Griffin said.

The AG encouraged Arkansans to contact their insurance company first and avoid rushing into agreements or paying upfront deposits to unknown contractors.

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Under Act 376 of 1997, businesses are prohibited from charging more than 10% above the pre-disaster price on specific goods and services, including:

• Repair and reconstruction services
• Building materials and tools
• Food and emergency supplies
• Gasoline and other fuels
• Medical supplies
• Rental housing, including hotel and motel rooms
• Transportation, storage, and moving services

If a local emergency is also declared by a city or county, the law expands to cover even more essential goods and services.

Violations of Act 376 are considered Class A misdemeanors and fall under the Arkansas Deceptive Trade Practices Act, which can carry fines of up to $10,000 per violation.

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The statewide ban will remain in place for at least 30 days and may be extended another 30 days. For home repairs, the restrictions last for 180 days.

Griffin’s office also released consumer protection tips:

• Don’t rush into contracts
• Get multiple estimates
• Check references
• Never sign incomplete paperwork
• Avoid paying in full until the work is finished
• Don’t let anyone pressure you into skipping your insurer

To report suspected price gouging or to learn more, visit the Arkansas Attorney General’s website.

Did you see the video of one of the Arkansas tornados?