Gas Prices Continue Rising, But When Is It Price Gouging?
(LOUISVILLE, March 20th, 2003, 10:30 a.m.) -- Kentuckians are paying more for a gallon of gasoline and one of the reasons is the uncertainty in the Middle East. Other factors include the oil industry strike in Venezuela and the high use of heating oil during the recent winter months.
Kentucky does not have a specific "price gouging" law. However, Kentucky's Consumer Protection law does prohibit unreasonably high prices that are not caused by an increase in the business' cost, if consumers are unable to buy the product at a lower price in the same area.
By definition, price gouging can occur when "only one supplier of a product is available to consumers and the supplier unreasonably raises the price of the product".
Here are two examples of "Price Gouging":
Following a disaster, the "only" supplier of electrical generators, increases the price of generators, simply to increase his profits.
The "only" supplier of batteries increases the price of batteries during an electrical power outage, simply to increase his profits. If a business increases prices because the business is being charged more by his supplier or if another business has the same product at a lower price, the higher priced item is not illegal.
It is not "Price Gouging" when: Gas prices rise because a station owner is being charged more by his supplier. Gas prices rise to any level, at one station, when lower prices are available at other stations.
The Attorney General's Office and Federal Trade Commission continue to monitor the price of all fuels in Kentucky.