Price Gouging Detection Calculator
Determine whether a price increase constitutes price gouging based on pre-emergency baseline prices and current prices. Many jurisdictions define price gouging as a price increase of 10%–25% or more above pre-emergency levels.
Formulas Used
Price Increase %
Price Increase % = ((Current Price − Baseline Price) / Baseline Price) × 100
Adjusted Allowable Threshold
Adjusted Threshold = Jurisdiction Threshold % + Supplier Cost Increase %
Accounts for legitimate cost increases passed through from suppliers.
Maximum Allowable Price
Max Allowable Price = Baseline Price × (1 + Adjusted Threshold / 100)
Excess (Gouging Amount)
Gouging Amount = Current Price − Max Allowable Price (positive value indicates gouging)
Severity Index
Severity Index = Price Increase % / Adjusted Threshold
A value > 1.0 indicates the threshold has been exceeded.
Assumptions & References
- Price gouging is typically defined as an excessive price increase during a declared state of emergency or disaster.
- California (AB 1813): 10% above pre-emergency price is the legal threshold.
- Florida (§501.160): Prices that "grossly exceed" the average — courts often apply ~10%.
- New York (Gen. Bus. Law §396-r): "Unconscionably excessive" — commonly interpreted as ≥10%.
- Texas (Bus. & Com. Code §17.46): Prices that are "exorbitant or excessive" — often ~25%.
- Federal guidance (FTC): No single federal price gouging law; the FTC monitors and refers cases to states.
- Justifiable cost increases (e.g., higher supplier costs, transportation) may be a legal defense and are factored into the adjusted threshold.
- This calculator is for informational purposes only and does not constitute legal advice.
- References: FTC Price Gouging Reports; National Conference of State Legislatures (NCSL) Price Gouging Laws database; state attorney general guidelines.