Texas AG Sues 3 Businesses for Price Gouging During Hurricane Harvey

September 13, 2017

Attorney General Ken Paxton has filed lawsuits against three Texas businesses, accusing them of unlawful price gouging while consumers were in need of fuel, shelter and other essentials as a result of Hurricane Harvey.

Texas law prohibits vendors from charging exorbitant prices for necessities such as drinking water, food, clothing, and fuel during a declared disaster. The attorney general named the following defendants in Hurricane Harvey price gouging lawsuits:

  • Robstown Enterprises Inc., doing business as Best Western Plus Tropic Inn. The Robstown-based hotel allegedly charged three times its normal room rate the weekend Hurricane Harvey hit. As a result, Best Western has since ended its relationship with Robstown Enterprises.
  • Bains Brothers, owners of Texaco-branded gas stations in the Dallas-Fort Worth area. Two of the stations allegedly charged $6.99 a gallon for regular unleaded gas on Aug. 31, even while displaying signs with prices in the $3-$4 range.
  • Encinal Fuel Stop, a Chevron-branded gas station just outside Laredo, allegedly charged customers $8.99 and $9.99 a gallon for regular unleaded gas on Aug. 31.

A finding of price gouging carries civil penalties up to $20,000 for each violation and an additional amount of up to $250,000 for incidents calculated to acquire money from victims 65 or older.

As of Sept. 12, the Consumer Protection Division of the attorney general’s office had received 3,321 Hurricane Harvey price gouging complaints.

Source: Texas Attorney General’s Office

Latest Comments

  • September 19, 2017 at 1:25 pm
    mr_bob says:
    Being the libertarian that I am, it is government overreach to fine or bring charges against an organization for charging as they see fit for a good or service. That said I c... read more
  • September 18, 2017 at 7:57 am
    Ron says:
    Doug Fisher, Answer: Until it negatively affects them.
  • September 15, 2017 at 1:36 pm
    Doug Fisher says:
    Price gouging is literally the free market in action. Every time someone argues to eliminate regulations and for free market principles, I have to wonder how far they are will... read more
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