North Carolina Price Gouging Law: Consumer Protection Guide

When the law applies, what counts as unreasonable pricing, and how to document and report problems during emergencies

During hurricanes, ice storms, or other disruptions, prices can change fast. North Carolina law protects consumers from unreasonably excessive prices for essentials during declared emergencies or abnormal market disruptions. This guide explains when the law turns on, how investigators judge pricing, and what steps you can take to document and report a concern without delay.

When protections apply

North Carolina’s price gouging law activates when the Governor declares a state of emergency or disaster, or formally finds an abnormal market disruption. The protections only apply within the areas covered by the declaration and end when the declaration ends or on day forty five unless extended. The law is broad by design so it can cover real needs in real time, including fuel, water, food, ice, generators, hotel lodging, home repair and debris removal, tree work, towing, and similar essentials.

• Triggering events. State of emergency, disaster declaration, or a formal finding of abnormal market disruption.
• Covered area and time. Applies only in the declared area and ends at the declaration’s end or at day forty five unless extended.
• Who is covered. Applies across the supply chain, including manufacturers, wholesalers, distributors, and retailers.

How pricing is judged

There is no automatic ten percent or twenty percent rule. Investigators compare today’s price to the seller’s average price during the sixty days before the emergency, then look at whether the seller’s own costs rose in ways tied to the event. If costs jumped and the price increase reasonably tracks those costs or a realistic risk premium, it may be lawful. If the increase simply takes advantage of the crisis, it is not.

• Cost increases matter. Higher wholesale, labor, security, transport, or insurance costs can justify limited increases when documented.
• Baseline comparisons. If the seller sold the item before, investigators compare to the sixty day average. If not, they compare to the going price in the trade area.
• Market swings. Fast commodity or supply changes are considered, but claims must match reality and records.

Examples that come up often

Emergencies drive demand and can stress supply. Some price movement is lawful when tied to documented costs. Other jumps raise red flags. Use these examples to decide when to collect evidence and report.

• Fuel. Short term spikes tied to refinery or pipeline issues can be legal if the station’s cost actually rose. Unexplained pump price jumps far above nearby stations deserve photos of posted prices and a receipt time stamp.
• Hotels and short term rentals. Event driven jumps can be illegal if not tied to costs. Save screenshots of quoted rates before and during the event and any messages about event pricing.
• Home repair, tree work, towing, debris removal. Overtime and equipment surcharges can be legitimate. Extreme, opportunistic pricing is not. Get written estimates that list labor, equipment, and any emergency fees.

What to do if you suspect price gouging

Quick, clear documentation helps investigators act. If you believe a price is unreasonably excessive and not tied to real costs, gather evidence and report it. Keep your copies in case refunds are issued later.

• Document the price. Photograph shelf tags, pump readouts, signs, estimates, and keep invoices or receipts with date, time, and location.
• Capture a before price. A prior receipt, a photo from earlier in the week, or a dated ad can help because investigators compare to the seller’s sixty day average.
• Ask for the reason. If staff cite higher wholesale or operating costs, write down what they tell you.
• Report it. File with the North Carolina Attorney General’s Consumer Protection Division online or call 1-877-5-NO-SCAM.
• Keep records. Save your photos, messages, and receipts so you can verify your claim and get refunded if applicable.

Where to get help

The North Carolina Department of Justice enforces this law and can seek refunds and penalties. You can report online through the Consumer Protection Division’s price gouging complaint portal.

• Report or get help. Submit a complaint with the North Carolina Department of Justice Consumer Protection Division or call 1-877-5-NO-SCAM.
• For businesses. Keep supplier invoices, fuel surcharges, overtime logs, and delivery receipts. Adjust prices only to reflect documented costs and reasonable risk. Maintain pre emergency price history and train staff to explain changes accurately.

Quick Checklist

• Check whether a state emergency or disruption has been declared for your area.
• Compare today’s price to the seller’s typical price before the event.
• Photograph prices, save receipts, and note dates and locations.
• Report suspected gouging to the Attorney General and keep your records.

North Carolina’s law draws a clear line. If a seller can document emergency related cost increases and sets prices that reasonably track those costs, limited increases may be lawful. If a seller exploits the crisis with unreasonably excessive prices, the state can intervene, seek refunds, and pursue civil penalties. Your documentation and report help protect the community when it matters most.