Texas Attorney General Greg Abbott is warning South Texas residents to be wary of price gouging and fraudulent attempts to defraud homeowners and other residents in the aftermath of recent flooding from tropical storms.

Heavy rainfall from Hurricane Alex and tropical depressions continue to cause severe flooding.

Gov. Rick Perry’s June disaster declaration, remains in effect.

Under Texas law, a disaster declaration triggers the provision of the Deceptive Trade Practices Act, which makes it unlawful to sell or offer to sell fuel, food, medicine or other necessities at exorbitant or excessive prices.

“Texas law prohibits vendors from artificially raising prices and profiteering from natural disasters,” Attorney General Abbott said.

“As South Texas communities begin their repair and recovery efforts in the wake of these storms, local authorities and affected residents should be on the lookout from unlawful price gouging – and report any wrongdoing to the Texas Attorney General’s Office,” he said.

“We will keep the residents of affected communities in our thoughts and prayers as we carefully monitor this situation along the Rio Grande River,” the attorney general said.

“When Texans turn to repairmen to help in the clean-up and rebuilding process, they should consider these tips:

• Deal only with licensed or bonded contractors or builders;

• Contact an insurance adjuster to get an estimate of the damage and repair cost;

• Be wary of contractors who solicit services door-to-door, especially those that are unfamiliar or from out of town;

• Get the salesperson’s license plate number;

• Don’t rush into signing a contract, and never pay up-front for promised work;

• Secure the terms of any warranty work in writing; and

• Ask for references, or rely on recommendations from friends or relatives who have had experience with honest contractors.

Although Texas’ price gouging law prohibits vendors from illegally raising prices to reap exorbitant profits during a disaster, it does allow retailers to pass along wholesale price increases to customers.

Thus, in some cases, increased prices may not necessarily signal illegal price gouging.

Additional information to help South Texas residents protect themselves against these and other disaster related scams is available on the Attorney General’s website at www.texasattorneygeneral.gov or by calling (800) 252-8011.