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Anti price-gouging laws

Kevin at Truck and Barter (a very excellent economics blog) posted a few days ago about anti price gouging laws, and that Viriginia is considering joing the roll of states that have one.

The Governor [of Virginia] is reviewing model legislation from other states. Legislation he could support would make it unlawful to sell merchandise or services which are consumed or used as a direct result of an emergency, or which are consumed or used to preserve or protect or sustain life, health, safety, or comfort of people or their property with the knowledge or intent to charge a price that is unreasonably excessive under the circumstances."

Although such a law might be good in some circumstance, the way it's described is sort of vague, and vague laws are dangerous to our freedoms.

I wonder if such laws could be used to prevent hospitals from charging such outrageous fees for emergency room services? Those fees are pretty expensive!

In a related issue, I have a complete lack of comprehension as to why some states outlaw ticket scalping. A ticket to a concert or a sporting event is in no way any kind of necessity, but in some states it's illegal to buy a ticket and then sell it at a higher price. There's a law that makes absolutely no sense.

posted Sunday, November 23, 2003

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