Cheaper Than Dirt Ordered to Pay Back $403K - TheFirearmGuy

Published on December 22, 2020
Duration: 5:29

This video discusses a legal ruling against Cheaper Than Dirt for illegal price gouging on firearms and ammunition in Texas during a declared disaster. The company was ordered to pay back over $403,000 to customers. The content highlights the illegality of price gouging necessities like ammunition under Texas law when a disaster is declared.

Quick Summary

Cheaper Than Dirt was ordered to pay $403,000 in restitution to customers for illegal price gouging on firearms and ammunition in Texas. This action was taken after the state declared a disaster, making it illegal to inflate prices on necessities like ammunition.

Chapters

  1. 00:00Firearm and Ammo Shortage
  2. 00:46Cheaper Than Dirt Accused of Rip-offs
  3. 01:11Texas Price Gouging Laws
  4. 01:31Ammunition as a Necessity
  5. 01:39Complaints to Attorney General
  6. 01:46Price Increases After Adding to Cart
  7. 02:23Examples of Price Gouging
  8. 02:44Lawsuit and Payout
  9. 03:03A Warning to Other Companies
  10. 03:38Cheaper Than Dirt's Business Practices
  11. 04:00Former Employee Insights
  12. 04:30Search Engine Visibility and New Buyers
  13. 04:46Cheaper Than Dirt: Rip-off Artists
  14. 04:50Caught Illegally
  15. 05:07Hope for a Lesson Learned

Frequently Asked Questions

What is the legal consequence for price gouging in Texas?

In Texas, it is illegal to price gouge on necessities during a declared disaster. Governor Greg Abbott declared the state a disaster area, making it unlawful to excessively increase prices on essential items like ammunition.

How much did Cheaper Than Dirt have to pay back due to price gouging?

Cheaper Than Dirt was ordered by the state of Texas to pay back $403,000 to customers who were victims of illegal price gouging on firearms and ammunition during a declared disaster.

What specific items were subject to price gouging by Cheaper Than Dirt?

Cheaper Than Dirt allegedly engaged in price gouging on firearms and ammunition. Examples cited include a rifle sold for $4,000, a handgun with a $300 MSRP sold for $850, and a CZ Scorpion sold for $800.

What led to the investigation into Cheaper Than Dirt?

Over a thousand complaints were filed with the Texas Attorney General's office by consumers alleging they were ripped off by Cheaper Than Dirt. These complaints focused on illegal price gouging during a state-declared disaster.

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