Price Gouging During Covid 19: What You Need to Know
Covid 19 is an infectious disease that has spread all around the world and it is taking lives of many. When it started spreading initially, it created a havoc and people started panicking. While businesses were shut down, people suffered not only from health issues, but also from unemployment. In the midst of this emergency, there were even more hurdles that were yet to come. Price gouging also took place during Covid 19. While the prices rose of various products, the prices of those that were in demand due to the Covid 19 situation, rose off the charts.
This happened due to two main reasons, the businesses needed to recover from the huge setbacks they were suffering from and the other reason for that people started hoarding stuff because of the panic the emergency situation brought. The government also took price gouging defense actions because the rise was way off the charts.
The prices of food items, sanitizing materials, soaps, face masks, etc were affected the most as they were in great demand. There are some price gouging laws that were implemented that were specifically designed for situations like these.
While the retailers were allowed some leniency, it was ensured that the price did not rise more than 20% of what it was initially. If it rose any more than that, then the state officials would take strict action against it.
The price setting should be carefully considered by businesses during the pandemic in order to avoid unfavorable conditions. It is best that they familiarize themselves with the laws regarding price gouging and in case they are having trouble understanding, they should seek help from legal consultants regarding this matter.