November 22, 2016
Is hotel guilty of price gouging for inflating its rates?
Dear Consumer Ed:
My daughter has an upcoming volleyball competition in Atlanta and the hotel prices have gone up dramatically for the weekend we want to stay. I realize there are several events going on that weekend, but isn't there a law that will prevent rates from skyrocketing? We want to stay very close to the event and they are just gouging us.
Consumer Ed says:
No, this would not be considered an instance of price gouging under Georgia law. The Fair Business Practices Act protects consumers from price increases on "necessary" goods and services as identified by the Governor in the declaration of a state of emergency. Necessary goods and services may include anything that the Governor deems necessary to preserve, protect, or sustain the life, health or safety of persons or their property.
When a hotel raises rates based solely on increased demand, not related to a state of emergency, it is a reflection of market forces and not an instance of price gouging.