Watch Out for Fair Weather Contractors

Friday, Apr 4, 2008

LITTLE ROCK –Arkansas has been hit by a range of severe weather, from flooding to most recently, tornadoes. When these tragic events happen, most Arkansans want to dig deep, roll up their sleeves and help in the recovery and rebuilding efforts. Unfortunately, while most people simply want to help their neighbors, there are others who only want to help themselves. More often than not, some unscrupulous contractors come to weather ravaged towns and try to overcharge for repairs and rebuilding. "Natural disasters bring enough tragedy to Arkansas's families," said Attorney General Dustin McDaniel, "and it is important that people know the law so that they can prevent a bad situation from becoming worse." Accordingly, the Attorney General issued this consumer alert to warn and inform consumers about price gouging and other schemes which tend to appear after disasters.

Price gouging occurs when a business charges substantially more for necessary goods or services after a disaster. Following the terrible tornadoes of 1997, Act 376 was passed to prohibit businesses from price gouging in the wake of a disaster or state of emergency by putting a general 10% cap on price increases. The law goes into effect whenever a state of emergency is declared by the Governor or the President, and it remains in effect for at least 30 days.

To avoid falling victim to price gouging in the wake of a disaster, the Attorney General offers the following tips:

- Comparison shop. Don't accept the first quote you are given, and try to avoid "drive-by" offers from door-to-door solicitors.
- Deal with reputable firms. Don't do business without getting the company's background information first. Usually, you can check a business's track record through the Better Business Bureau (http://www.bbb.org/).
- Put it in writing. When you are prepared to enter into a contract, put it in writing and don't be afraid to spell out exactly what you want done and how you want it done.
- Don't pay in advance. Insist on paying for the services after they have been completed to your satisfaction, and never hand over a large amount of money up front.

If you believe you have been the victim of price gouging or would like more information, please contact the Public Protection Department of the Attorney General's office at 501-682-2341 or toll free statewide at (800) 482-8982.