Hurricane Harvey: Texas AG Sues 3 Businesses For Alleged Price Gouging Amid Natural Disaster

AUSTIN, TX — The state's attorney general on Tuesday filed lawsuits against three Texas business accused of price gouging during Hurricane Harvey.

“It’s unconscionable that any business would take advantage of Texans at their most vulnerable — those who are displaced from their homes, have limited resources, and are in desperate need of fuel, shelter and the basic necessities of life,” Attorney General Ken Paxton said in a prepared statement. “Texas has tough price gouging laws, and my office will continue to aggressively investigate and prosecute cases arising from Hurricane Harvey.”

The businesses Paxton has sued for alleged price gouging during a time of natural disaster are:

• Robstown Enterprises, Inc., doing business as Best Western Plus Tropic Inn. The Robstown-based hotel allegedly charged three times its normal room rate the weekend Hurricane Harvey hit. As a result, Best Western has since ended its relationship with Robstown Enterprises, according to the AG's office.
• Bains Brothers, owners of Texaco-branded gas stations in the Dallas-Fort Worth area. Two of the stations allegedly charged $6.99 a gallon for regular unleaded gas on Aug. 31, even while displaying signs with prices in the $3 to $4 range, Paxton said.
• Encinal Fuel Stop, a Chevron-branded gas station just outside Laredo, allegedly charged customers $8.99 and $9.99 a gallon for regular unleaded gas on Aug. 31, according to Paxton.

State law prohibits vendors from charging exorbitant prices for necessities such as drinking water, food, clothing, and fuel during a declared disaster. A finding of price gouging carries civil penalties up to $20,000 for each violation and an additional amount of up to $250,000 for incidents calculated to acquire money from victims 65 or older.

Related story: Hurricane Harvey: Best Buy Busted Trying To Sell $42 Water Bottle Cases Amid Natural Disaster

To date, the Consumer Protection Division unit of the attorney general’s office has received 3,321 Hurricane Harvey price gouging complaints, according to Paxton's office. Those who may have been scammed or price gouged during Hurricane Harvey should call the AG's Consumer Protection Hotline toll-free at (800) 621-0508, email consumeremergency@oag.texas.gov, or file a complaint online by clicking here.

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