Understanding Price Gouging Laws and Your Pricing Strategy

Understanding Price Gouging Laws and Your Pricing Strategy

During a declared State of Emergency (SOE), many jurisdictions activate anti-price gouging laws to prevent "excessive" price increases for essential services, which often include short-term rentals and lodging. These laws are designed to protect residents and travelers during critical events like winter storms, fires, or other natural disasters.

When do these laws apply?

Price gouging protections are typically triggered by an official declaration of a State of Emergency by federal, state, and local authorities. These laws often remain in effect for a specific window after the emergency has terminated.

Steps to take if you are in an affected jurisdiction

If a State of Emergency is declared in your area, we recommend the following proactive steps:


  1. Monitor Local Declarations And Determine If Price Gouging Laws Are Applicable To Your Listings: 

    1. Stay informed via local government press releases regarding SOE status and price gouging warnings. Price gouging laws can vary by jurisdiction

    2. Short-term rentals are frequently included under "lodging" or "essential services" even if not explicitly named in the statutes. 

    3. Some jurisdictions also have clauses that modify how the price gouging law applies to you depending on whether the cost of providing services has increased. 


  1. Implement Controls If Needed: If you determine that price gouging laws are applicable to your listings, you have two options:

    1. Implement Temporary Controls: You can manually adjust your Max Price or use Fixed Pricing for the affected dates in PriceLabs to ensure you do not exceed the local cap. 

    2. Request Price Support To Implement Restrictions: You can also reach out to support@pricelabs.co and ask for price controls to be put in place. When you reach out:

      1. Provide the specific jurisdiction (City/County/State).

      2. Include a link to the official State of Emergency declaration if possible.

      3. Identify how long the restrictions should apply for. 


We typically take up to 48 hours to implement the restrictions. For each affected stay date, we will cap your prices according to what your prices were for that stay date as of a day before the emergency declaration. 
    • Related Articles

    • What is Dynamic Pricing and how to use it?

      Dynamic Pricing provides automated daily rate and minimum stay updates based on market data and your listing performance. You can deep dive into how it works here. We analyze each listing and recommend daily rates based on several factors. We control ...
    • Seasonal Pricing Customizations (aka Pricing Profiles)

      What are Pricing Profiles and how can they help you? "Pricing Profile" is a feature that we have introduced to solve for specific use-cases for seasonal markets. A "Pricing Profile" is a user-defined set of configuration of Pricing Customizations. ...
    • Understanding the Pricing Calendar

      The calendar shows recommended prices for each available night in the future. You might notice that each day has a different price - and this is the magic of dynamic pricing! In general, the prices fluctuate around the base price (either calculated ...
    • Pricing Offsets

      The Pricing Offset customization allows users to apply a Fixed or Percent price adjustment on the Recommended Price after all other customizations have been applied. This feature is especially useful for ensuring comparable pricing across different ...
    • Pricing Beyond 1.5 Years

      For most of our listings, we default to sending prices for a period of 1.5 years (540 days). However, we have observed that not many bookings are made more than 1.5 years in advance, which can make it challenging for our system to detect events. For ...

    Sign up for training

    To help you get the most out of PriceLabs, we have training webinars in English, Spanish, Portuguese and French. Click here to Register.