Michigan Attorney General Dana Nessel is putting her weight behind a move to implement federal price gouging legislation. Garnering support from a coalition of attorneys general from 16 jurisdictions, including California, New York, and the District of Columbia, Nessel has co-drafted a letter to Congress leaders to call attention to this consumer protection issue. With a majority of states already having laws against price gouging, the coalition is urging for a national framework to better protect consumers, particularly in the wake of natural disasters and emergencies.
Price gouging, the practice of jacking up prices of essential goods during crises, has been recognized as both "unjust and economically harmful," as highlighted in a letter sent by the coalition. In it, the attorneys general outline the limitations of state-based legislation which, they claim, often fails to effectively to pursue higher up the supply chain culprits. Small businesses frequently feel the squeeze during these times, as they struggle with maintaining fair pricing and avoiding legal repercussions, as detailed by the Michigan Attorney General's website.
"Price gouging is an unscrupulous practice that takes advantage of customers during their most vulnerable moments," Nessel said, according to the Michigan Attorney General's website. This unified stance also emphasizes the four key benefits that a federal ban would introduce, including pausing panic-driven pricing decisions, preventing inefficient disaster pricing, discouraging hoarding behavior, and restraining the prices for goods with limited competition.
Efforts at the state level have seen Nessel taking an active role against practices of price exploitation. Her recent legal actions against several tree service companies allegedly involved in price gouging after a storm was an important move. However, she acknowledges that under the current Michigan Consumer Protection Act, it's an uphill battle to take unified price hikes to task. To strengthen the fight against price inflation during emergencies, Nessel promoted Senate Bills 954-956, which define excessive pricing specifically and delineate the legal avenues to challenge it. They also offer procedural defenses for sellers to justify price increases, as well as outline the penalties for violations.
