Hotel rooms at USD 1,000 per night. Gasoline prices are rising. Even bottled water prices double or triple overnight.
Texas officials say the winter storm destroyed power and water for millions it offers an opportunity for unscrupulous traders to take advantage of the situation by charging exorbitant prices for essential supplies.
A system set up in Houston on Wednesday for residents to report price drop incidents has received more than 450 complaints in less than 20 hours, said Harris County Attorney Christian Menefee, Texas’ chief civil attorney.
“The main types of things we see are hotels that set prices at ridiculous rates,” Menefee said. “We have seen allegations that water packs are sold two to three times the normal price, or water packs distributed and individual bottles sold at excessive prices.”
Dashawn Walker, 33, searched a hotel room Tuesday night to avoid the cold of his helpless Dallas apartment. After finding all the rooms booked in Dallas, he ended up driving to an extended-stay hotel in the suburb of Lewisville just to pay $ 474 for a one-night stay.
“It’s crazy,” he said. “I mean, why would you go to hotels in the middle of a crisis? Like, dude, come on now. Everyone is just trying to do it and capitalizing on a crisis, and this is so unfair to people who can’t afford it. “
Such price increases are illegal under Texas law, which prohibits the sale of fuel, food, drugs, housing, construction materials or other necessities “at an exorbitant or excessive price” during a state or federal disaster declaration. .
The Texas Attorney General’s Office has asked residents who suspect they are victims of falling prices to file a complaint with their office. Violators may be required to reimburse consumers and may be fined up to $ 10,000 for each violation. If the victims are elderly, additional penalties of up to $ 250,000 may be imposed.
Dallas hotelier Larry Hamilton said that while there may be legitimate complaints about falling prices, he also wondered if some complaints were unfounded. He said the prices at his 193-room Aloft Hotel in downtown Dallas are on average $ 94 a night and that a customer became upset when asked for $ 109.
“The general manager called me and threatened to report us for digging,” Hamilton said. “Moreover, this is also Economics 101, price is what creates a balance between supply and demand and is an important regulator. The price is something that fluctuates and should. ”
The hospitality company has suffered a financial blow in the last year, largely due to government-mandated closures and people’s reluctance to travel during a pandemic. Hamilton, who had to close another boutique hotel in Dallas due to power outages, said hotels in the area occupied less than 10 percent during the pandemic.
“It was a bloodbath,” he said.
In Missouri, Gov. Mike Parson said he had asked the attorney general there to investigate complaints about falling natural gas prices, which have risen amid supply problems and extreme cold that has swept much of the central and southern United States. .
“I realize the lack of fuel, natural gas or whatever, but I don’t want anyone to take advantage of that,” Parson said, adding that he finds it frustrating that prices “go up so much.” a few days of cold and bitter temperatures.
“I can’t imagine what it will be like in the case of sticker shocks when many people receive their bills. It will be a difficult environment, “said Parson.
In Houston, Menefee encouraged companies to take a neighborhood approach and that “we should look at each other.” If not, a visit by a state or local investigator to a company accused of lowering the price is usually enough for prices to return to normal.
“If you raise prices, you can get on our list,” he said. “If you raise them to a level that really raises eyebrows, you can count on one of our investigators knocking on the front door.”
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Murphy reported from Oklahoma City. Associated Press reporters Jake Bleiberg of Dallas and Jim Salter of St. Louis, contributed to this report.