Avoiding Price-Gouging Pitfalls While Navigating Price Increases in the Era of COVID-19
As COVID-19 continues to impact communities across the country—causing many state and local authorities to extend (or reinstate) emergency orders and other pricing restrictions—the road companies must travel to implement price increases (no matter how justifiable) continues to be littered with price-gouging statutes that, if not skillfully navigated, can lead to costly exposure. Because price gouging is currently governed by state law, with each state setting its own requirements, ensuring compliance on a national scale is difficult, expensive, and fraught with pitfalls. But there are actions companies can take to minimize the risk of a collision with state attorneys general and/or class actions filed by private litigants.
This Jones Day White Paper outlines the most important aspects of, and differences among, the current state statutes, the issues companies often face in determining whether and how to implement a price increase, and tips companies can use to avoid, or at least minimize, the bumps in the road to obtain a smoother ride.
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