Press Releases
03/18/2022
AG Tong Testifies in Support of Legislation to Strengthen Price Gouging Enforcement
(Hartford, CT) — Attorney General William Tong today testified in support of House Bill 5463 which seeks to strengthen the state’s ability to combat price gouging.
House Bill 5463 “An Act Concerning the Authority of the Office of the Attorney General to Bring an Action Against a Seller Who Engages in Price Gouging During a Disaster or Emergency” would extend the state’s ability to bring price gouging enforcement actions against bad actors and sellers higher up the supply chain.
Connecticut’s current price gouging statute only applies to retail sales, excluding wholesale and sales within the supply chain.
During declarations of emergency, price gouging is against Connecticut law. Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against price gougers and seek appropriate relief, including injunctive terms, restraining orders, restitution, and civil financial penalties designed to deter future unscrupulous sales.
During the pandemic, the Office of the Attorney General received over 750 COVID-related price gouging complaints, but limitations in the existing price gouging statutes curtailed the state’s ability to crack down on some of the worst actors that sought to take advantage of severe shortages in protective equipment and essential goods.
Many of these 750 complaints concerned small retailers who the Office of the Attorney General found were not responsible for price gouging. In these scenarios, a wholesaler or supplier or sometimes both were jacking up prices, forcing smaller retailers to raise the price point to obtain a profit or break even.
“The current price gouging statute has an Achilles heel,” Attorney General Tong said in his testimony. “It only applies to retailers. It does not cover suppliers, wholesalers, and rental and leasing businesses. This bill would remedy that shortcoming to allow us to bring enforcement actions against the culpable parties within the chain of distribution. Price gougers should not be immune from liability when they victimize Connecticut consumers simply because they are not retailers. If the statute is not modified, and we are faced with a new emergency declaration, price gougers will be able to profit with impunity.”
House Bill 5463 would also provide a better legal standard for price gouging. The current law states that any increase in price that exceeds the price in the ordinary course of business is prohibited. The proposed bill prohibits price increases that are “unconscionably excessive.”
A copy of Attorney General Tong’s testimony can be found here.
Separately, the Office of the Attorney General has received 125 complaints of price gouging regarding gasoline prices. Gasoline price gouging enforcement is governed by a separate state statute that allows the Office of the Attorney General to bring actions against wholesalers and distributors.
The Office of the Attorney General has sent 52 letters to gas stations in Connecticut seeking more information about the alleged price gouging complaints. Not every price increase is price gouging, but the Office of the Attorney General will investigate every report of price gouging it receives.
Anyone who suspects price gouging should file a complaint with the Office of the Attorney General online at https://www.dir.ct.gov/ag/complaint/. If consumers are unable to file a complaint online or via email, they can call the Office of the Attorney General at 860-808-5318.
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
Consumer Inquiries:
860-808-5318
attorney.general@ct.gov