If you see it, report it — Price gouging is a violation of the law

Pago Pago, AMERICAN SAMOA — The American Samoa Department of Health Environmental Health Services is once again reminding members of the public that investigating price gouging is the responsibility of the Bureau of Consumer Protection.

This was cited on the ASDoH Environmental Health Services official Facebook page.

They referenced what the consequences of price gouging as outlined on the Attorney General’s website, which states that under American Samoa law, price gouging is increasing prices after an emergency is declared. 

“Raising prices more than 10% above pre-declaration prices. There are exceptions that allow businesses to increase prices by more than 10%.”

There are valid reasons for increasing prices after an emergency is declared and under local laws it allows people and businesses to increase their prices more than 10% if the costs to the retailer for supplies or labor increases.

“When we receive a report of price gouging, we will investigate whether or not the price increase is justified.

“So if a retailer was selling tomatoes for $1 before the declaration, and after the declaration the retailer was selling them for $2, that could be price gouging.

However an explanation for the price increase could be “if the retailer couldn't get the tomatoes in by ship, the retailer had someone bring them in by plane that would increase the cost to the retailer. 

“That would justify a reasonable price increase.”

The AG’s office encourages members of the public to report price gouging matters to the Bureau of Consumer Protection. 

“Please provide detailed information about the store, business, or person that has raised its prices since the beginning of the declared emergency. 

“We need to know the name of the product as well as the price before and after the emergency. “We will send someone to the stores to investigate the price increase. 

“If the price increase is confirmed, we will look into the reason for the price increase.

“Some price increases are allowed by the law.”

Furthermore the AG’s Office cited that their goal is to obtain voluntary compliance with the law.

“If we find that someone is price gouging, we will determine an appropriate course of action. 

“We may give a warning and explain the law. 

“Violators are also subject to civil fines of up to $1000 per violation, the loss of business license, or criminal prosecution as a Class A misdemeanor.”