Price Gouging is against the Law

Price gouging is the unjustified increase in the price of goods, especially during or following an emergency or disaster. During a time of crisis, some vendors may hike prices, preying on the vulnerability of consumers, to maximise profits because of increased demand. This practice is illegal.

The Law

Section 8 of the Trade Act states that no person whose business includes the sale of goods shall sell any necessary goods to another person at a price higher than the price that was charged before a national emergency or hazard.

This law is especially enforced when the Prime Minister declares the country a threatened area or a disaster area. Price gouging after any such declaration is treated as profiteering and attracts a fine of up to $1 million.

Necessary Goods

The Trade Act considers necessary goods to be food or drink; personal care items such as soap, toiletries, feminine hygiene products, diapers, cleaning products, bleach; medical supplies – including prescription and non-prescription medication; building and roofing supplies; safety supplies such as trash bags, dust masks, ladders, generators, gloves; and emergency supplies such as candles, flashlights, batteries, first-aid kits, etc.

Exclusions

The Trade Order does not regulate prices of commodities that are otherwise regulated by the following acts: Sugar Industry Control Act; the Agricultural Produce Act; the Agricultural Marketing Act; the Coconut Industry Control Act; the Banana Board Act; or the Jamaica Agricultural Commodities Regulatory Authority Act. These acts govern industries that produce goods that may be directly or indirectly affected by natural disasters and, in turn, may warrant price increases as production costs vary.

For additional information, contact:

Consumer Affairs Commission
Address: 17-19 Connolley Road, Kingston
Phone: 1-888-225-5222, 876-906-5425
Website: www.cac.gov.jm
Email: info@cac.gov.jm
Facebook: @ConsumerAffairs Commission
X: @AffairsJamaica