Overcharge Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Overcharge, written in plain English, along with examples of how it is used.

What is Overcharge?

An price charged for something which is much higher than it should be. It also means overloading.

History and Meaning of Overcharge

Overcharge refers to a situation where a seller or service provider charges significantly more for a product or service than its actual value. The term 'overcharge' is used to signify excess or surplus, occasionally used with a criminal component. Overcharging could be intentional, as in the case of price gouging, or unintentional due to errors in pricing or billing.

Examples of Overcharge

  1. A customer purchases a bottle of water from a seller at a music festival for $20, whereas the actual price should have been around $3.

  2. A hospital bills a patient $500 for an aspirin, while the standard rate is $10.

  3. A mechanic replaces a small part in a vehicle and charges $1000, even though the job should have cost roughly $100.

Legal Terms Similar to Overcharge

  1. Price gouging - Similar to overcharge, this refers to the practice of excessively hiking up prices for essential goods and services in times of crisis, such as natural disasters or pandemics.

  2. Fraud - Intentionally deceiving someone for monetary gain.

  3. Unfair Trade Practices - A deceptive act or practice that violates the law of competition, such as misleading advertising, mishandling of customer information, and breach of warranties.