Hurricane Helene Triggers Price-Gouging Laws That Could Affect Self-Storage Operators in Several Southeast States

In the days following Hurricane Helene, governors in several Southeast states have declared a state of emergency (SOE), activating price-gouging laws that could impose limitations on self-storage rental rates. The affected areas are Florida, Georgia, North and South Carolina, Tennessee, and Virginia, as well as select counties in Kentucky, according to a Sept. 30 newsletter from the Self Storage Association (SSA) to its members.

Price-gouging laws are designed to protect consumers from unfair pricing practices that can occur when demand for essential goods and services spike due to a crisis, such as a natural disaster. All 50 states have pricing restrictions that go into effect during an SOE, but not all are clearly applicable to self-storage businesses, and some contain exemptions. Facility operators should consult with their legal counsel prior to making any rate changes at this time, the SSA advised.

Florida’s SOE, which took effect on Sept. 23, restricts businesses from raising prices by more than 15% on essential goods and services. Violators can be fined up to $1,000 per violation and face additional penalties up to $25,000 for multiple acts. The SOE will expire in 90 days, unless extended, according to the Florida state attorney general’s office.

Georgia’s SOE is in effect through Oct. 2. Price increases are only permitted if they “accurately reflect an increase in the cost of new stock or the cost to transport it, plus the retailer’s average markup percentage applied during the 10 days immediately prior to the SOE declaration.” Violators can be fined $2,000 to $15,000 per violation, according to Georgia Attorney General Chris Carr.

In Kentucky, it’s illegal to raise prices by more than 10% compared to the price before the emergency was declared. Offenders can face a fine of up to $25,000 per violation.

North Carolina’s SOE took effect on Sept. 25 and will remain in place for 30 days. Price-gouging terms state that businesses are restricted from charging anything “that is unreasonably excessive under the circumstances.” Violators face a fine of up to $5,000 per violation, according to attorney general Josh Stein.

South Carolina’s SOE took effect on Sept. 25 and will remain in place for 15 days. State law says it’s unlawful to “rent or sell or offer to rent or sell a commodity at an unconscionable price.” Violators face a fine of up to $1,000 per violation, according to attorney general Alan Wilson.

The Anti-Price Gouging Act in Virginia prevents sellers from imposing “unconscionable prices” on essential goods and services for 30 days following the declaration of an SOE. The current SOE was declared on Sept. 25 and remains in effect for 45 days.

Tennessee’s price-gouging law prohibits businesses from charging “unreasonable prices” during an SOE, with violators facing up to a $1,000 fine per offense. The current SOE remains in effect until Nov. 10.

The SSA represents about 22,000 U.S. and international member-affiliated self-storage facilities, according to its website. It’s allied with several state and international self-storage associations and has about 6,000 members.

Sources:
Georgia Attorney General's Consumer Protection Division, Price Gouging
North Carolina General Assembly, G.S. 75-38
South Carolina Attorney General, Price Gouging
SSA Magazine Weekly 9/30/24
Tennessee Attorney General’s Office, Price Gouging & Disaster Recovery
WRIC, Virginia Residents Encouraged to Report Suspected Gas Price Gouging in Helene’s Aftermath