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SOUTHEAST TEXAS RECORD

Tuesday, March 19, 2024

Texas AG brings price-gouging suit against Auctions Unlimited, accuses company of taking advantage during COVID-19 emergency

Lawsuits
Paxton ken

Paxton

HOUSTON – Just last week, Texas Attorney General Ken Paxton warned retailers that state law strictly prohibits price gouging, promising to take action against any price-gouger selling necessities at an excessive price during the COVID-19 emergency.

On March 26, the state of Texas filed suit against Auctions Unlimited in Harris County District Court, asserting Deceptive Trade Practice Act violations.

On March 13, Gov. Greg Abbott issued a statewide disaster proclamation because of COVID-19

According to the lawsuit, Auctions Unlimited sold necessities such as facemasks, hand sanitizer and cleaning supplies to consumers at process at prices greatly exceeding the normal and reasonable price for such goods.

“Thus, Defendant is taking advantage of the disaster by demanding and charging exorbitant and excessive prices for these necessities,” the suit states.

On March 24, Abbott issued an executive order to secure millions of essential supplies. That same day, the bidding for N95 respirator masks on Auctions Unlimited has pushed the price as high as $180 for a package of 16 masks.

Auctions Unlimited normally sells the masks for around $10 – 20 a box, the suit states.

Case No. 2020-19535

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