What is meant by 'price gouging'?

Price gouging refers to the practice of charging excessively high prices for goods or services during times of emergency, such as natural disasters, or when there is a significant shortage of needed items. This practice often occurs when demand surges due to the urgent needs of consumers, leading some sellers to exploit the situation by increasing their prices well beyond what is considered reasonable.

Understanding price gouging is important within the context of consumer rights, as it can take advantage of vulnerable populations who may have no choice but to pay inflated prices for essentials like food, water, or medical supplies during crises. Laws and regulations often aim to prevent price gouging to protect consumers from exploitation and to promote fair trading practices, especially during emergencies. This differentiates it clearly from practices like selling products at discounted prices or giving away products for free, which do not involve exploiting a crisis.