Fuels

Gouging Probe Continues

Ga. investigating 200 stations for hurricane price increases; only 21 cases resolved so far
ATLANTA -- The state of Georgia is still investigating 200 gas stations for price gouging in the wake of Hurricanes Gustav and Ike last fall. The Governor's Office of Consumer Affairs (OCA), which received more than 2,000 complaints or inquiries from consumers about price gouging or gasoline shortages, is still investigating a number of cases. As of December 31, 21 cases have been resolved: 12 with a finding of no price gouging and nine with a finding of price gouging.

Some of the complaints alleged that the stations charged them as much as $9.99 a gallon, said an Associated [image-nocss] Press report. Under state law, businesses have to prove that they were making the same profit with their elevated prices as they were prior to Governor Sonny Perdue activating the antigouging statutes. Some of the stations simply have to refund money to customers who can prove with a receipt they bought gasoline during the gouging, while others have to pay up to $5,000 in fines to the state.

According to OCA administrator Joe Doyle, OCA began the investigation of price gouging immediately after Governor Perdue's Executive Order of September 12, 2008.

Under Georgia law, price-control statutes are activated upon the Governor's declaration of a state of emergency. During the declared state of emergency, businesses may not sell any goods or services necessary to protect the health, safety or property of citizens at prices higher than the prices at which those same goods or services were offered before the declaration of a state of emergency. The only exception allowed is if the business can document that the price was increased only in an amount which accurately reflects an increase in the cost of the goods or services to the person selling the goods or services or an increase in the cost of transporting the goods or service into the area. Absent a declared state of emergency, competition and demand drive prices in the free-market economy.

Cases were evaluated on the individual facts, and the settlements with violators included fines, consumer restitution or both. All fines collected were deposited in the state treasury. If a gas station operator was required to provide consumer restitution, he or she had to post signage stating that customers with receipts who were covered by the agreement were eligible for refunds.

OCA, which received more than 2,000 complaints or inquiries from consumers about price gouging or gasoline shortages, is still investigating a number of cases. The agency also put hundreds of stations on notice of the provisions of the price-gouging statute in order to avoid future violations.

The recent settlements include the following Georgia businesses:
Aden's Minute Mart No. 42, Douglas: Restitution plus $1,000 fine. Aden's Minit Market No. 50, Meigs: Restitution plus $750. Aden's Minute Market No. 52, Pelham.: Restitution plus $1,000. Stop N Shop No. 2, Jessup: Restitution plus $500. Fillers No. 22, Warner Robins: Restitution only. Fillers No. 24, Perry: Restitution only Marathon Ashland, Cedartown: Restitution only. Ashley's Convenience Store, Savannah: Restitution plus $3,000. Executive Park Chevron, Atlanta: Restitution plus $5,000.

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