Regulation or Free Market: Finding the Right Policy to Deal With Price-Gouging

Regulation or Free Market: Finding the Right Policy to Deal With Price-Gouging
Ontario Premier Doug Ford holds a bottle of hand sanitizer during a press briefing at the Ontario Legislature in Toronto on March 28, 2020. The Canadian Press/Chris Young
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With the ongoing crisis due to the COVID-19 pandemic causing a scarcity of some items, price-gouging has become an issue, prompting Ontario Premier Doug Ford to enact new legislation, particularly to protect essential goods like face masks, hand sanitizer, and disinfectant wipes.

In reaction to a Toronto store charging $29.99 for Lysol wipes, Ford “declared war” on price-gougers by enacting an emergency order that would impose such penalties as a $100,000 fine and a year in jail, while corporations convicted for price gouging could be fined up to $10 million.