Consumer Alert: Tips to Avoid Scams and Price Gouging Following State of Emergency

Governor Sarah Huckabee Sanders declared a state of emergency on Wednesday April 2, 2025, following severe storms that caused significant damage across northeast Arkansas. In response, price gouging protections under Act 376 of 1997 are now in effect.

Attorney General Tim Griffin warned that some dishonest individuals may attempt to take advantage of storm victims with fraudulent repair offers. He urges Arkansans to contact their insurance companies first and avoid paying deposits to untrustworthy contractors.

Homeowners should remember:

• Insurance companies will honor their home policies.
• Do not feel pressured to sign contracts immediately.

To avoid storm cleanup scams, consider these tips:

• Get multiple estimates and check references.
• Never sign contracts with blank sections.
• Avoid paying contractors in full until the work is complete.
• Don’t let contractors discourage you from contacting your insurance company.

Price gouging rules also prohibit businesses from charging more than 10% above pre-disaster prices for repair services, building materials, emergency supplies, fuel, and more. For detailed information on local emergency declarations, consumers should contact their city or county governments.