Storm-Tossed Texans Warned to Watch for Price-Gouging

Hurricane Dolly rips up parts of South Texas

July 23, 2008

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Now that Hurricane Dolly has come ashore — and brought with it torrential rains and winds gusting to 100 mph — Texas Attorney General Greg Abbott warns consumers to be wary of price gouging.

He also reminds Texans that price gouging is now prohibited under state law.

Hurricane Dolly struck the south Texas shore earlier today — packing its first punch on South Padre Island. The second hurricane of the season ripped off roofs and left thousands without power. There were no immediate reports of deaths or injuries.

Texas Governor Rick Perry declared 14 counties in south Texas disaster areas. That means state resources can be used to send emergency workers and equipment to areas in the path of this Category 2 hurricane.

It also means that businesses and individuals are prohibited from charging exorbitant prices for such necessities as groceries, clothing, medical supplies, lodging, repair work, and fuel.

"During declared disasters, state law prohibits vendors from dramatically increasing the price of necessities," Attorney General Abbott said, adding there are stiffer penalties for those who engage in such practices. "South Texans should take steps to protect themselves and report any alleged price gouging to the Office of the Attorney General."

Abbott also warned consumers along the Gulf Coast to be wary of con artists promising to repair their homes — or other fraudulent businesses--that may surface in the wake of the hurricane.

Before hiring anyone to help in the clean-up and rebuilding process, Abbott said consumers should:

• Deal only with licensed or bonded contractors or builders;

• Call their insurance adjuster to get an estimate of the damage and repair cost;

• Be leery of contractors who solicit services door-to-door, especially those from another city;

• Get the salesperson's license plate number;

• Don't be rushed into signing a contract;

• Never pay up-front for promised work;

• Get all contracts and warranties in writing;

• Ask for references or get recommendations for honest contractors from friends or relatives

To report price gouging and other fraudulent business practices, Texans should call the Attorney General's Hotline at (800) 252-8011. They can also file complaints online at www.texasattorneygeneral.gov.

The 14 counties included in the Governor's disaster declaration are: Aransas, Bexar, Brooks, Calhoun, Cameron, Hidalgo, Jim Wells, Kenedy, Kleberg, Nueces, Refugio, San Patricio, Victoria and Willacy.

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