News/Events

LITTLE ROCK – Attorney General Leslie Rutledge sent letters to Amazon, eBay and Walmart which allow third-party sellers to offer consumer goods through online retail platforms. The letter notified the companies’ CEOs that Arkansas’s price gouging laws automatically went into effect on March 11, 2020, after Governor Hutchinson’s state of emergency declaration. The letter also praised the companies for their proactive response in preventing price gouging during the COVID-19 pandemic and encouraged them to take further action to stop bad actors from artificially raising prices on basic needs products during this public health crisis.

“Arkansans have enough on their minds right now and paying exponentially inflated prices for basic necessities shouldn't be one of them,” said Attorney General Rutledge. “I am committed to working with online retail platforms to hold pandemic profiteers accountable to the full extent of the law.”

Arkansas’s price gouging law prevents individuals or businesses from increasing product prices by more than 10 percent of what the product would have cost prior to the state of emergency declaration on March 11, 2020. Violators can face criminal charges and fines as well as civil penalties of up to $10,000 per incident. Arkansans can report price gougers to the Attorney General’s Office at ArkansasAG.gov or call (800) 482-8982.

Interested Arkansans can sign up for the free webcasts at ArkansasAG.gov or call (800) 482-8982.

• Know the average price for goods like hand sanitizer, soap and non-perishable food items before purchasing. If it seems too high, ask questions.
• Avoid high-pressure sales tactics to purchase items that claim to keep you healthy.
• When possible, deal with established, reputable businesses in the community.
• Stay updated on the latest risks, warnings and prevention tactics at CDC.gov/Coronavirus.

The price gouging law is triggered whenever a state of emergency is declared by federal, state or local governments. The ban on price gouging remains in effect for at least 30 days on goods and services related to the emergency and can be extended another 30 days by the governing body, if needed. The scope of the law is broad and is intended to cover anything that may be needed in the event of a state of emergency.

Arkansas’s price gouging law prohibits businesses from excessive and unjustified increases in the prices charged for essential goods and services during an emergency. Businesses may lawfully charge a higher price if they can establish that the higher price is directly attributable to additional costs incurred by the retailer, its supplier or as the result of additional costs for labor or materials.

For more information about other common scams and consumer-related issues, please call the Arkansas Attorney General’s Office at (800) 482-8982 or visit ArkansasAG.gov or Facebook.com/AGLeslieRutledge.