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February 09, 2010

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16 Companies Settle With State On Gas Price Gouging

Published: 6:49 AM, 04/17/2009 Last updated: 6:51 AM, 04/17/2009
 


Source: The Greeneville Sun

NASHVILLE -- Tennessee Attorney General Bob Cooper filed settlements on Thursday with 16 companies and individuals who own 27 gas stations in Middle and East Tennessee over allegations of price gouging in the wake of Hurricane Ike last September.

The nearest affected East Tennessee station to Greeneville is in Hawkins County, according to a news release issued by Cooper.

The settlements will result in $73,447 in potential restitution for consumers, according to the release.

Collectively, the settlements amount to the largest enforcement sweep under the state's price gouging statutes in the state's history.

GAS STATIONS CITED

The companies and gas stations who settled with the Attorney General are:

Rocky Top Markets, for eight stations in East Tennessee; Pilot Corporation and Pilot Travel Centers, for three stations in Knoxville and one in Powell; Git 'n Go, Inc., for two stations in Clinton; Chally Wally (Winchester);

Also, Shady Valley Country Store (Shady Valley); Caryville Amoco BP (Caryville); Stop 'n Go Market (Morristown); Burnett's Fuel Center (Allardt); Lovell Shell (Knoxville); Adams' Lakeside Market (Estill Springs); Big D's Shell (Clinton); Seven Star Stop (Johnson City); Fun Foods (Harriman); Rock Hill Grocery (Rogersville); Lacy's Market (Mt. Juliet) and Speedy Market (Winchester).

The Attorney General also filed suit against Knoxville-area retailer, Weigel Stores, Inc., for alleged unlawful price increases under the Tennessee Price Gouging Act of 2002 and the Tennessee Consumer Protection Act at seven gas stations.

WHAT LAW REQUIRES

"Tennessee laws make a distinction between profits and profiteering. Under the Tennessee Consumer Protection Act, it is unlawful to unreasonably raise the price of an essential consumer good in response to a natural disaster, crime, or act of terrorism regardless of whether those events occurred in Tennessee or somewhere else."

On Sept. 13, 2008, Hurricane Ike made landfall in Texas, prompting several states to declare states of emergency. In the days following the storm, Knoxville and parts of East Tennessee had some of the highest gasoline prices in the country.

Even before Hurricane Ike made landfall, thousands of consumers reported suspected price gouging. Overall, the state government registered more than 4,000 calls alleging excessive pricing.

The defendants who settled collectively advertised and sold regular unleaded gasoline at prices ranging from $4.69 to $5.98 per gallon.

Under the settlements, all of the gas stations will make restitution directly to consumers who submit a valid claim and will be paying civil penalties and costs to the state.

Collectively, these civil penalties total $40,000.

The total amount of restitution available to consumers is over $73,447.

For complete details regarding these stations visit the Attorney General's Web site at www.tn.gov/attorneygeneral.

For more information, consumers may also call the state's Division of Consumer Affairs at 1-800-342-8385.

For more information and stories, see today's edition of The Greeneville Sun.

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