Price Gouging During COVID-19: A Defence Perspective

Introduction

During the COVID-19 pandemic, governments moved quickly to prohibit price gouging of necessary goods. These offences, while regulatory in nature, carry serious consequences and require careful legal analysis from defence counsel.

What Counts as Price Gouging?

Price gouging occurs when necessary goods are sold at an unconscionable price during an emergency. Necessary goods include items such as masks, disinfectants, hygiene products, and non-prescription medications used to treat COVID-19 symptoms.

Strict Liability and Due Diligence

These offences are strict liability. Once the prosecution proves the act, the burden shifts to the accused to establish due diligence. This means showing that reasonable steps were taken to comply with the law, including proper pricing practices and efforts to understand regulatory requirements.

How Defence Counsel Approach These Cases

Defence strategies often focus on comparative pricing evidence, supply-chain realities, industry norms, and internal business records. Each day of alleged overpricing can constitute a separate offence, making early legal advice essential.

Conclusion

Price gouging laws were designed to protect consumers during emergencies, but they also demand careful and fair enforcement. Businesses and individuals facing these allegations should seek legal advice promptly.