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ARTICLE · 07 AUGUST 2013

Price Gouging During A State Of Emergency

During the recent flooding emergency in southern Alberta, a state of local emergency was declared by the City of Calgary under the provisions of the Emergency Management Act.

CanadaCorporate/Commercial Law

During the recent flooding emergency in southern Alberta, a state of local emergency was declared by the City of Calgary under the provisions of the Emergency Management Act.  During that emergency, a number of stories emerged about merchants charging grossly inflated prices for basic supplies, such as water and lodging.  In one widely-circulated example, a liquor store in an area hit by blackouts was reported to be charging $20 for bags of ice (pictured above).

In response to allegations of gouging, the head of the Calgary Emergency Management Agency was quoted as saying:

"Under the Emergency Management Act in the province of Alberta, price-gouging or price-fixing above normal levels during a state of local emergency is illegal, and it would take some co-operation between ourselves and police, but individuals could be prosecuted for that."

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