Virginia House Democrats

House Minority Leader Ward Armstrong Proposes Changes to Virginia Post-Disaster Anti-Price Gouging Act

RICHMOND, VA – House Minority Leader Ward Armstrong (D-Henry) today announced that he will patron legislation during the 2009 General Assembly session to strengthen the Virginia Post-Disaster Anti-Price Gouging Act.

Armstrong’s bill will clarify language in the code to provide for investigation of oil companies suspected of selling goods at unconscionable prices in Virginia during a state of emergency. The bill also expands the circumstances in which the Anti Price Gouging Act could be triggered to include states of emergency declared outside of Virginia.

Gasoline prices skyrocketed in parts of Virginia in the days leading up to and including the Texas landfall of Hurricane Ike. Price gouging investigations in the wake of Hurricanes Gustav and Ike highlighted potential weaknesses in the current law. The changes proposed today will ensure that the Commonwealth has the tools necessary to fully protect Virginia’s consumers, small businesses, and retailers from unconscionable price gouging.

“In my district the price of gasoline jumped fifty cents or more a gallon before Ike even hit and before we knew if there would be any damage to the oil rigs or refineries in the Gulf. These dramatic price increases occurred even as the price of oil dropped below $100 a barrel for the first time in weeks. Most retailers must pass along their increased costs to consumers, so if the oil companies are gouging, everyone down the line suffers,” said Armstrong. “During times of disaster we have a proud tradition of coming together to support and aid our community and neighbors. Taking advantage of the misfortune of others should not be tolerated at any level,”

Currently 29 states have consumer protection legislation against price-gouging. Several states, including Florida and North Carolina, provide for action against all classes of sellers of consumer goods.

The Virginia Post-Disaster Anti-Price Gouging Act was enacted in 2004 and strengthened in 2006 in the wake of Hurricane Katrina.

Video of today’s press conference is available online at:
http://www.youtube.com/watch?v=owspZSlq_tU