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Recently, Gov. Josh Green declared a statewide housing emergency in Hawaii. However, this declaration may have unintended consequences for consumers. A Maui attorney, Lance Collins, believes that the governor’s proclamation automatically prohibits retail and wholesale price increases on all commodities, including groceries and gas.
Collins, representing the Hawai’i Working Consumers Hui, has sent letters to eight major retailers in the state, warning them about the prohibition on price increases during the housing emergency. He argues that selling commodities at prices higher than those offered on July 17, 2023, would not only be unlawful but also harmful to consumers.
In his letters, Collins advises that any consumer affected by price gouging during declared emergencies is entitled to compensation ranging from $1,000 to $5,000, along with attorney’s fees. The recipients of these letters include Foodland Super Market, Times Supermarket, KTA Super Store, Safeway, Whole Foods, Walmart, Costco, and the owner of Sam’s Club.
While Collins’ group has not observed any blatant price gouging in the past two weeks, they have noticed price increases in basic goods like milk and gas since the housing emergency was declared. However, Green, who is currently traveling, has not responded to Collins’ claims.
The state Department of the Attorney General disagrees with Collins’ interpretation of the governor’s emergency order. They argue that no such price controls are in effect as a result of the housing emergency.
According to the Office of Consumer Protection, an emergency declaration triggers a statutory price freeze at pre-emergency levels for all goods and commodities, unless the proclamation specifically excludes price increases. In Green’s proclamation, no such exclusion is stated.
Consumer Protection advises individuals to keep receipts and report any instances of price gouging to the agency. It is important to note that price increase prohibitions during emergencies are often short-lived. In this case, the prohibition expired on July 21.
While there is some debate surrounding the legality and applicability of the price increase prohibition, Collins believes that it should be enforced whenever a state of emergency is declared. He clarifies that his announcement is not a criticism of the housing emergency proclamation itself but rather a call to enforce the price increase prohibition triggered by such proclamations.
Some lawmakers have previously tried to amend the terms of the price increase prohibition to address similar concerns. However, their bills did not receive a hearing.
Overall, it remains to be seen how the situation will unfold. As readers, we value your opinions and will keep you updated on any developments regarding this issue. Thank you for your continued support.
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