LITTLE ROCK, Ark. — Severe storms battered Arkansas from Friday night into Saturday morning, claiming lives, injuring residents, and damaging properties across the state. In response, Attorney General Tim Griffin has activated a decades-old law to combat businesses exploiting the crisis with excessive pricing. Following Governor Sarah Huckabee Sanders’s emergency declaration on Saturday, Griffin pledged to enforce Act 367 of 1997, which penalizes price gouging during disasters.
Griffin voiced his support for storm victims, grieving for those lost and cautioning against shady operators offering rapid repairs. He warned that dishonest individuals might already be targeting vulnerable Arkansans with promises of fast fixes. He urged residents to reach out to their insurers first and avoid handing over deposits to contractors who could disappear with their funds just as swiftly.
Under Act 376, triggered by the emergency, businesses cannot raise prices more than 10 percent above pre-storm levels for specific goods and services, such as:
- Repairs or rebuilding efforts, including any work on homes or businesses harmed by the disaster
- General services, covering labor or tasks related to selling or fixing goods, properties, or upgrades
Griffin reassured homeowners that their insurance policies remain valid, advising against hasty agreements with pushy contractors. To help residents steer clear of scams, he shared these recommendations:
- Seek multiple bids for any job
- Ask for references and verify them thoroughly
- Resist any contractor pushing for an immediate hire
- Avoid signing agreements with unfilled sections to be completed later
- Hold off on full payment until the project is fully done
- Don’t let a contractor stop you from consulting your insurer
- Carefully check and comprehend all paperwork submitted to your insurance provider
With the governor’s emergency order in place, Act 376 also limits price increases on:
- Construction supplies, like wood, tools, windows, and other items needed for building or repairing structures
- Food products, including anything meant for human or animal consumption, such as drinks, sweets, or seasonings
- Emergency essentials, covering items like water, flashlights, radios, batteries, candles, blankets, soap, diapers, temporary shelters, tape, personal care products, plywood, nails, and hammers
- Fuel, including gasoline or any power source for vehicles or equipment
- Lodging rentals, encompassing stays at hotels or motels
- Medical goods, such as prescription drugs, over-the-counter medicines, bandages, gauze, rubbing alcohol, and germ-killing products
- Transport, shipping, and storage services, including moving personal or commercial items or leasing equipment for those tasks
Griffin stressed that breaking Act 376 violates the state’s Deceptive Trade Practices Act, with penalties reaching $10,000 per offense. Violators also face Class A misdemeanor charges. He made it clear that profiteering during this crisis will face strict consequences.
The price gouging restrictions will last at least 30 days, with the possibility of a 30-day extension if needed to protect Arkansans’ safety, homes, and well-being. For repair-related services, the rules extend to 180 days. Griffin pointed residents to state resources for more information on Act 376.
Reiterating the stakes, Griffin noted that violating Act 376 triggers the Deceptive Trade Practices Act, carrying fines up to $10,000, and offenders will be charged with a Class A misdemeanor. He underscored that price gouging will not be permitted.
The ban on excessive pricing remains active for a minimum of 30 days, with an option to prolong it another 30 days if the situation demands it to safeguard lives, property, and public welfare. For home repair services, the restriction stretches to 180 days.
