Do Nonprofits Charging Free Services Create Legal Issues?

Virginia’s recent winter storm brought with it the usual state of emergency announcements along with “the inevitable swooping in” of some politicians going “after anyone who’s price gouging.”

Price gouging laws basically mean things like “batteries,” “tree removal services,” food and water can’t be sold at “unconscionably higher” prices than they were “10 days prior to the storm,” explains Scott Goodman, a defense attorney at The Goodman Law Firm in Charlottesville, Virginia.

“The business or the supplier that can open its books and show that this is what it costs them to get the water [for example] and that the percentage of the profit that they’re adding on top of that when they sell it to a customer is basically the same as it was prior to the state of emergency, that would again, speak to the fact that they’re not price gouging. They’re simply passing along a higher cost that they have to the customer.”

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