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The Associated Press April 26, 2011, 4:50PM ET

Ky. gov issues executive order on price gouging

Kentucky Gov. Steve Beshear has signed an executive order that triggers provisions of a law that holds people and businesses accountable for price gouging during a state of emergency.

The executive order allows Attorney General Jack Conway to investigate price-gouging complaints involving gasoline, building supplies, hotels and other goods and services.

Beshear declared a state of emergency in Kentucky on Monday. Heavy rains have led to flooding in much of the state, and more storms are in the forecast through Thursday. The Ohio and Mississippi rivers are expected to have major flooding, possibly even historic flooding.

Beshear activated the same price gouging statutes after previous disasters in 2008 and 2009. After Hurricane Ike in 2008, gas retailers paid fines of about $100,000 for violating the price-gouging law.

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