Alabama Coronavirus: AG Warns Against Price Gouging

With Alabama’s price gouging law in effect, Attorney General Steve Marshall is warning people who wish to illegally profit from the state's current public health emergency to think before they act. Otherwise, they could face a hefty fine and be barred from doing future business in the state.

“Alabamians should be on guard against those who would seek to prey upon them through price gouging of commodities and services for consumption or use as a direct result of the public health emergency,” Attorney General Marshall said. “Furthermore, those who seek to
profit during this time of emergency through price gouging will be subject to the law.”

When Gov. Kay Ivey declared a State Public Health Emergency in Alabama on March 13, the state's price gouging automatically took effect. It prohibits the “unconscionable pricing” of items for sale or rent.

Although what constitutes an unconscionable price is not specifically set forth in state law, Marshall said a price that is 25 percent or more above the average price charged in the same area within the last 30 days — unless the increase can be attributed to a reasonable cost in connection with the rental or sale of the commodity — is a likely a good indication of unconscionable pricing.

According to Marshall, the penalty for breaking the law is $1,000 per violation, and those determined to have willfully and continuously violated the law may be prohibited from doing business in Alabama.

Alabamians who want to file an illegal price gouging report are encouraged to do so via the Alabama Attorney General’s Consumer Interest Division web link: https://www.alabamaag.gov/consumercomplaint, or by calling 1-800-392-5658 to receive a form by mail to complete and return. You may also write the Alabama Attorney General’s
Office, 501 Washington Avenue, Montgomery, Alabama, 36130.

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