Att. General Abbott Visits Displaced Texans Red Cross Shelter

Cautions retailers hotel operators on price gouging prevention laws   Texas Insider Report: AUSTIN Texas BASTROP TX Texas Attorney General Greg Abbott today traveled to Bastrop County where he participated in a briefing with state and local emergency management authorities and urged local residents to take precautions during these dangerous wildfire conditions.   The Attorney General also reminded area retailers and hotel operators that the governors disaster declaration prohibits vendors from price gouging during a declared disaster. After meeting with local authorities Attorney General Abbott visited a Red Cross shelter for displaced residents at Bastrop Middle School. With more than 30000 acres already consumed by the Bastrop County Fire - and thousands more acres affected in other regions of Central Texas and across the State - it is vitally important that Texans take all necessary precautions to protect themselves during a very dangerous disaster situation" Attorney General Abbott said. All Texans should be aware that drought conditions pose a tremendous threat so we must all work to prevent these fires before they ignite. Texans who reside in areas with active fires should develop a plan for ensuring their families can evacuate their homes and safely exit affected areas in less than 10 minutes. Careful advanced preparation is critical to saving lives during these very dangerous conditions."   Attorney General Abbott added:

In the wake of Governor Perrys disaster declaration which applies to the entire State of Texas price gouging prevention laws are triggered that prevent retailers and hotel operators from unlawfully profiting from a declared natural disaster. The Attorney Generals Office is committed to strictly enforcing the States price gouging laws which apply to necessities such as groceries clothing medical supplies lodging repair work and fuel during and after the crisis. We will continue working closely with Governor Perry Division of Emergency Management Chief Nim Kidd Bastrop County Judge Ronnie McDonald and other officials to provide all necessary support during this very difficult and dangerous situation."

Gov. Perrys disaster declaration is effective in all Texas counties. A disaster declaration triggers strict penalties under the Deceptive Trade Practices Act which prevents retailers and hotel operators from charging exorbitant prices for necessities during a declared disaster. During declared disasters hotel occupancy taxes are waived and therefore should not be collected by hotel and motel operators. Improperly collecting those taxes constitutes a violation of state price gouging prevention laws. Although Texass price gouging law prohibits vendors from illegally raising prices to reap exorbitant profits during a disaster it does allow retailers to pass along wholesale price increases to customers. Thus in some cases increased prices may not necessarily signal illegal price gouging. According to the Texas Forest Service the Bastrop County Complex fire which started on Sept. 4 has consumed more than 30000 acres and destroyed nearly 600 homes. A second fire in Bastrop County the Union Chapel fire has consumed another 750 acres. Over the Labor Day weekend three fires west of Bastrop consumed more than 7000 acres some of which included densely populated residential areas. In the past seven days the Texas Forest Service has responded to 181 fires that affected more than 7500 acres. Over the last 48 hours alone the Forest Service reports that more than 700 homes have been destroyed. According to the Governors Office since the beginning of wildfire season local and state firefighters have responded to more than 20900 fires that have destroyed more than 1000 homes and burned more than 3.6 million acres. Texans who believe they have encountered price gouging during the wildfire and drought disaster should call the Office of the Attorney Generals toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.