Following the devastating April 2 storms that caused significant damage across northeast Arkansas, Governor Sarah Huckabee Sanders has declared a state of emergency under Executive Order 25-07. As a result, Arkansas’s price gouging laws are now in effect under Act 376 of 1997, aiming to prevent businesses from unfairly inflating prices on essential goods and services during disaster recovery.
Arkansas Attorney General Tim Griffin has issued a warning to residents about potential storm cleanup scams and fraudulent contractors looking to take advantage of homeowners.
“I continue to pray for those impacted by the April 2 storms, which caused significant damage across much of northeast Arkansas. Unfortunately, unscrupulous people may already be preying upon our neighbors with offers of quick repair jobs. Arkansans should call their insurance company first and not be pressured into paying a quick deposit to someone who will take off with their money just as quickly.” – Attorney General Tim Griffin
Important Reminders for Homeowners
- Insurers will honor home policies.
- There is no need to rush into or feel pressured to sign a contract.
To protect yourself from fraudulent contractors, follow these seven tips:
- Get multiple estimates before choosing a contractor.
- Demand references and verify their work history.
- Do not let contractors pressure you into hiring them.
- Never sign a contract with blank spaces left to be filled in later.
- Avoid paying the full amount upfront—pay only when work is completed.
- Do not let a contractor discourage you from contacting your insurance company.
- Carefully review all documents sent to your insurance company.
Under Act 376, businesses cannot charge more than 10% above the pre-disaster price for essential goods and services, including:
- Home and commercial repairs
- Building materials (lumber, tools, windows)
- Food and emergency supplies (water, flashlights, batteries, toiletries, etc.)
- Gasoline and motor fuels
- Medical supplies (prescriptions, first aid materials)
- Rental housing and temporary shelters
- Transportation, freight, and storage services
The price gouging law remains in effect for at least 30 days, with possible extensions to protect consumers. For home repair services, the law remains in effect for 180 days.
Violating Act 376 is considered a violation of the Deceptive Trade Practices Act and can result in:
- Fines up to $10,000 per violation
- A Class A misdemeanor charge
Arkansas residents who suspect price gouging or scams should report concerns to the Arkansas Attorney General’s Office by:
- Calling: (800) 482-8982
- Emailing: consumer@arkansasag.gov
- Filing a complaint online: Arkansas AG’s Price Gouging Page
As Arkansas begins recovering from the storms, residents should remain cautious of scams and fraudulent pricing. Verify contractors, monitor pricing, and report any suspicious activity to ensure that no one takes advantage of those already suffering from storm-related damage.
