Texas Versus Cheaper Than Dirt
BY Herschel Smith4 years ago
That’s not the name of a court case, but I expect it will be in the future.
Texas Attorney General Ken Paxton has accused the Fort Worth-based website Cheaper Than Dirt, which primarily sells firearms, ammunition and hunting gear, of price gouging at the start of the pandemic.
The AG’s office identified over 4,000 sales that involved price gouging and has directed Cheaper Than Dirt to pay $402,786 in refunds to consumers, according to court documents filed this month.
Over 100 people have complained to the AG’s office about Cheaper Than Dirt, the Houston Chronicle reported earlier this year.
The same week that Gov. Greg Abbott made a pandemic-related disaster declaration in Texas, ammunition orders to Cheaper Than Dirt substantially increased. In response to the increased demand for its products, the website raised the prices on hundreds of its products, according to the AG’s office.
The Texas AG’s office has identified ammunition as a necessity and, as a result, is arguing that those price hikes were against the Texas Business and Commerce Code. The code forbids businesses from “taking advantage of a disaster” by selling “fuel, food, medicine, lodging, building materials, construction tools or another necessity at an exorbitant or excessive price.”
Additionally, the following weekend that Abbott issued the disaster declaration, Cheaper Than Dirt manually raised its prices outside of its normal schedule.
“Making these manual ‘real-time’ price changes caused confusion for consumers because the prices consumers saw on the website pages when selecting items for purchase were different from the prices that appeared in the final check-out cart,” the AG’s office said in court documents.
Some of the comments I’ve seen online point to declarations of guns and ammunition as being essential and necessary, and you can’t benefit from that in a time of emergency (not that I agree with Covid being an “emergency”) and then raise prices without running afoul of the law.
On the other hand, making stores and products available in an emergency isn’t the same thing as buying them for you, or even ensuring price controls.
I don’t believe in price controls. No free market advocate believes in price controls. I’ve seen the CTD ads in my in-box and if I stupidly open them, I usually laugh out loud at the prices.
You can find better ammo prices elsewhere by a large margin. It just requires a little work. I choose to ignore the CTD ads, almost never visit their web site, and just don’t shop there. They’ll probably never get any business back from me.
That’s how it’s supposed to work. Screw the customer, lose your customer base. The government should have nothing to do with it. However, I will say that letting people drop things in online carts and then raising the prices is pretty stupid. There should be a time-out on carts, and users should be informed what that is.