Among the legal risks businesses and institutions face during the COVID-19 pandemic are allegations of price gouging, especially for sellers of consumer products. Since this crisis began, prosecutors have regularly announced investigations and enforcement actions for alleged price gouging. Meanwhile, plaintiffs’ lawyers are actively recruiting clients to file price-gouging class actions.
While the Department of Justice has brought enforcement actions against alleged price gougers and hoarders of medical supplies under the recently implemented Defense Production Act, the overwhelming bulk of enforcement activity has been at the state level, where state laws may prohibit price gouging during a declared state of emergency.
