TALLAHASSEE, Fla. -- Florida Attorney General Charlie Crist filed the state's first price gouging lawsuit on Friday as a result of Hurricane Katrina, alleging that a Tallahassee, Fla.-based Swifty Stars retail gas station raised its gasoline prices during a declared state of emergency and falsely advertised the actual prices being charged.
From August 25, when the store received its last shipment of regular and premium unleaded gasoline, to September 1, the price per gallon increased 70 cents for regular and 80 cents for premium, the suit said. Swifty [image-nocss] Stars had not purchased or taken delivery of additional gasoline prior to the price increase, indicating the increases were not due to higher costs.
After receiving a detailed citizen complaint, the AG's Office investigated and learned, allegedly, that Swifty Stars misled consumers by advertising one price and charging another. On August 31, Tallahassee resident Ken Deemer visited the Swifty Stars station at 4550 Capital Circle NW to purchase regular unleaded gasoline based on the advertised price of $2.89; however, when he used his debit card to prepay at the pump, he was charged $3.29 per gallon, 40 cents higher than the price advertised on the sign. Deemer reported that when he asked about the difference in price, the attendant told him he was "out of luck."
The Swifty Stars station is located near Interstate 10, which was a main highway used by evacuees as they fled from Hurricane Katrina.
When an investigator from the AGl's Economic Crimes Division visited Swifty Stars the day after Deemer's complaint, he observed that the outdoor sign normally used to advertise gasoline prices was blank. The price for regular unleaded gasoline at the pumps was allegedly 60 cents higher than what Deemer saw advertised the previous night, and 20 cents higher than what Deemer actually paid.
"Some gas price increases may have been due to legitimate market conditions, but clearly others can be attributed to raw greed, said Crist. The [AG]'s Office will continue to protect its citizens and visitors and prosecute gougers to the fullest extent of the law."
The investigator interviewed the station's corporate vice president, Mohammed Al Helow, who then spoke by telephone to the station's owner, Al Khalil, while the investigator was present. Al Khalil indicated that he raised the price of gasoline to reduce the heavy volume of customers and because he wanted to save some gasoline for himself.
Swifty Stars is charged with violating Florida's price gouging statute, which carries a maximum fine of $1,000 for each occurrence up to a total of $25,000 for multiple violations committed in a single 24-hour period. Additionally, the business is charged with violating Florida's Unfair & Deceptive Trade Practices Act, which carries a penalty of $10,000 or $15,000 for any victims over the age of 60.
One week ago, the AG launched a statewide investigation into the rapidly rising prices of fuel, sending teams of investigators and sworn law enforcement personnel to locations throughout Florida to determine whether the rapid rise of fuel prices met the legal definition of gouging.
As of 9:00 a.m. Friday, Christ's office had received 1,360 complaints about skyrocketing gasoline prices through its toll-free consumer hotline and email correspondence, he said.
Earlier in the month, as part of his investigation into the price of gasoline, Crist subpoenaed two gasoline distributors seeking records of their deliveries into Florida. Those companies were Colonial Oil Industries and Murphy Oil USA. In July, he subpoenaed two other gasoline distributors, Motiva Enterprises and Tate Oil Co., following Hurricane Dennis.
Click here to read the AG's complaint against Swifty Stars.
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