Price gouging after a Florida storm: what the law covers for repairs

When Florida's price gouging law applies

Section 501.160 of the Florida Statutes makes it unlawful, once the Governor declares a state of emergency, to sell or offer to sell an essential commodity at an unconscionable price within the area covered by the declaration. The statute defines a commodity broadly as any goods, services, materials, merchandise, supplies, equipment, resources, or other article of commerce, and the prohibition reaches essential commodities, including services, that are necessary for consumption or use as a direct result of the emergency.

The timing is limited too. The prohibition lasts no more than 60 days under the initial declaration, and it can be extended by an executive order from the Governor that specifically references the section. Outside the declared area, or outside that window, section 501.160's price prohibition does not reach the sale.

The Florida Attorney General describes the covered items as lumber, ice, water, chemicals, generators, shelter and other necessary goods and services, and says the law does not apply to non-essential luxury goods.

How a price is judged

The statute does not set a percentage. It says a price is prima facie evidence of being unconscionable if it represents a gross disparity from the average price at which that commodity was sold in the usual course of business during the 30 days immediately before the declaration, or if it grossly exceeds the average price at which the same or similar commodity was readily obtainable in the trade area during those 30 days.

Both tests carry the same exception: an increase is not evidence of gouging when it is attributable to additional costs the seller incurred, or to regional, national, or international market trends. The Attorney General's office puts it this way: it is not considered price gouging if the seller can justify the current price by showing an increase in the price of their supplies or market trends.

That is why one high estimate, on its own, does not answer the question. The comparison the law makes is with prices before the emergency, which a homeowner usually cannot see. What you can see is whether several written estimates describe the same scope, and where they differ.

Who enforces it, and the penalties

Section 501.160 says it creates no private cause of action for a person harmed by a violation. Violations are enforced by the office of the state attorney or the Department of Legal Affairs, which is the Attorney General's office. According to the Attorney General, violators are subject to civil penalties of $1,000 per violation and up to $25,000 for multiple violations committed in a single 24-hour period.

The same statute adds a licensing rule for emergencies: during a declared emergency, a person who offers goods and services for sale to the public without a business tax receipt commits a second-degree misdemeanor. The Attorney General's office describes this as selling goods and services without an occupational license.

What to do with a repair estimate that worries you

The Attorney General's advice after a storm is to get estimates for clean-up and repairs in writing from licensed contractors, demand proof of proper licensing and insurance, and not let anyone bully you or force you into a quick decision. Written estimates help whichever way it turns out: they let you compare scope, and the Attorney General lists estimates, invoices, and bills among the evidence to gather if you suspect gouging.

Before deciding a price is gouging, line the estimates up item by item. A higher total can reflect a larger scope, such as emergency tarping priced together with the permanent repair, a full replacement instead of a repair, or code-required work that another bid left out. Differences like those are questions for the contractor, not evidence of a violation.

If you still suspect price gouging, report it to the Attorney General's Price Gouging Hotline at 1-866-966-7226, through the No Scam app, or online through the Attorney General's website. Include your name and contact information, the name and address of the business, why you believe gouging occurred, and any documents you have.