Arkansas Attorney General Sues Capital City Tree Service for Price Gouging Tornado Victims
The Arkansas Attorney General, Tim Griffin, has taken significant action against Capital City Tree Service, LLC for allegedly engaging in price gouging during severe weather events in 2023 and 2024. The company, which operates as a tree removal service, is accused of exploiting consumers in their time of need.
States of emergency were declared in March 2023 and May 2024 following tornadoes and thunderstorms that ravaged different parts of Arkansas. During these times of suffering and devastation, Capital City Tree Service operated across the state, taking advantage of consumers by charging exorbitant prices for tree removal services.
Griffin’s office claims that in the wake of these storms, the company routinely charged more than ,000—and in at least one instance as high as ,948—to remove a single tree. In April 2023 alone, the company billed Arkansas consumers more than 0,000 for these services.
The lawsuit argues that Arkansas law prohibits an increase in price of more than 10% during times of emergency. However, Capital City Tree Service allegedly circumvented this prohibition by insisting that consumers sign contracts requiring an eight-hour minimum, even though most jobs took less than four hours to complete.
- The company also failed to provide consumers with estimates of the total price of the equipment needed, often providing substantially lower estimates than the final invoiced amount.
- Capital City Tree Service is accused of rushing consumers through the contract on a tablet or phone and failing to provide them sufficient time before executing the agreement.
- Additionally, many of the consumers harmed by these practices were over the age of 60.
- The company misled consumers by stating there would be no out-of-pocket cost for tree removal services. Instead, they repeatedly told consumers that they would only bill the consumer’s insurance company and work with the insurance company to resolve any payment.
- Despite these claims, Capital City Tree Service refused to work with consumers’ insurance companies and demanded full payment. If payment was not received, the company filed a lien on the consumer’s house, and in at least one instance, asked a consumer to sign over the deed to their house.
The lawsuit seeks full restitution for consumers, injunctive relief against Capital City Tree Service, and penalties for violating the Arkansas Deceptive Trade Practices Act. Attorney General Griffin is sending a clear message to companies doing business in Arkansas: “you will not profit off the despair of fellow Arkansans. If you illegally exploit Arkansas consumers, my office will pursue you to the full extent of the law.”
