Lawmakers Urge Governor to Instate Executive Order to Prevent Price Gouging in Emergencies

September 1, 2005

Springfield, IL…A group of House Republican lawmakers today sent a letter to the governor urging him to instate an executive order making it unlawful to increase the price of goods and services in the state of an emergency. The letter was in response to recent spikes in gasoline prices in conjunction with the devastating strike of Hurricane Katrina.

“I can remember too well the price gouging that took place immediately after 9/11 and I don’t want that to happen again,” said State Representative Bill Mitchell (R-Forsyth). “It is obvious that Hurricane Katrina has also brought out the worst in some people who have chosen to price gouge. I urge Governor Blagojevich to take immediate steps to stop price gougers and close them down if that’s what it takes.”

“Distributors of goods and services should not be profiting from the misfortune that Hurricane Katrina has caused,” said Representative Ron Stephens (R-Greenville). “Price gouging is not only illegal, it severely harms the economy – and to me, that’s insensitive to those who are suffering from the wrath of this unfortunate disaster.”

The proposed executive order would inhibit retailers and wholesalers from charging unreasonable prices for goods and/or services. However the order does not prevent price increases that accurately reflect a rise in the cost of the product, the cost to transport the product, or the general strains of supply and demand.

“The vast majority of filling station owners in my area are honest people who struggle to make a living and wouldn’t think of gouging their neighbors by jacking up the price of gas,” said Representative Mike Bost (R-Carbondale). “But there can be a rotten apple in any basket and I’m joining with my colleagues in urging Governor Blagojevich to issue an executive order preventing Illinois gasoline retailers from selling gas at an unreasonable price not justified by market conditions. Those that ignore the order should be put out of business.”

The lawmakers said currently no law protecting consumers against price gouging exists in Illinois, however they plan to file effective legislation next week.

“We've got to be aggressive about protecting consumers from price gouging," said Representative Chapin Rose (R-Mahomet). "Predatory pricing of gasoline should not be tolerated. Profiteering in a time of tragedy and crisis is both unconscionable and illegal.”