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ARTICLE · 26 APRIL 2021

A Comedy Of Errors Sinks A Local Government's Price Gouging Case

Proskauer Rose LLP
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In a case of mistaken identity and a web of conflicting testimony, a Fresno local business successfully appealed a price gouging fine.

United StatesAntitrust/Competition Law

In a case of mistaken identity and a web of conflicting testimony, a Fresno local business successfully appealed a price gouging fine.  The saga between the store and the City of Fresno offers insights in the importance of maintaining proper business records to defend potential price gouging allegations.

On April 8, 2021, an Administrative Hearing Officer for the City of Fresno, California dismissed an Administrative Citation issued by the City Attorney's Office against a local business for allegedly price gouging.  City Inspectors issued the $10,000 citation in March 2020 while Fresno was under a State of Emergency.  The store owner appealed the fine, and after a virtual hearing, the Hearing Officer determined that the City had not met its burden of proving each element of the case against the business.

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