Texas AG warns of price gouging following Harvey

Texas Attorney General Ken Paxton said he has received "hundreds" of reports about price gouging in the aftermath of Hurricane Harvey and is warning consumers to "be on your guard."
2:54 | 08/30/17

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Transcript for Texas AG warns of price gouging following Harvey
Price gouging. Right in the mid the of the devastation in Texas some businesses accused this morning of raising prices on essentials in one instance, $99 for a case of water. ABC's senior national correspondent Matt Gutman is in Houston with more on this story. Good morning, Matt. Reporter: Hey, good morning, Amy. Imagine selling this bottle of water for 5 bucks a pop. Now, the Texas state attorney general says it's not only cruel, it is criminal and he's investigating hundreds of cases of gouging here. Texas tempers flaring. Furious over markups on necessities like this man selling water out of his truck accused of marking up bottles by 500%. You ought to be ashamed of yourself. Reporter: Now in the middle of this massive crisis, the Texas attorney general says he's already received over 600 reports of price gouging. Just check out one woman's receipt from a Corpus Christi convenience store. She says she was charged 65 bucks for just two cases of beer at a raceway gas station. I think this is ridiculous. Reporter: Then this photo of water for sale at Best Buy for $42. Raceway says it's investigating. The store manager apologizing telling ABC news overnight it was a clerical error and not price gouging. Adding, we did give a full refund. Best Buy also apologizing telling ABC news it doesn't even sell cases of water. This was a big mistake on the part of a few employees at one store. As a company we are focused on helping, not hurting affected people. Nearby, best western telling us it's severing any affiliation with its hotel in corpus Christi, refunding 40 guests after it was accused of nearly tripling room Tes. The hotel chain saying we do not tolerate this type of egregious and unethical behavior. We've seen water up to $99 for a case of water. We've seen fuel prices up to $20 a gallon. We've seen hotels jack prices up sometimes six, seven times. Reporter: Officials now laying down the law. In Texas offenders can face fines up to $20,000 per offense. And up to $250,000 in a victim is 65 or older in we're looking at prices over the last three months. If you've increased those prices by more than 10% we'll look at it. Reporter: That's not the only kind of prove tearing. Yesterday we were at a shelter and somebody said they could bring a semi truck to take away all of the surplus dough nations to another location but officials suspected that person was trying to steal the donations in order to sell them but it is worth noting, guys, that most people here, the vast majority are actually giving away donations rather than trying to sell anything. Amy, George. These tragedies bring out the best and worth in some people. It's good to see officials are cracking down. Absolutely, thank you, Matt.

This transcript has been automatically generated and may not be 100% accurate.

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