Risalvato said, "Last summer...Milgram distributed a press release disclosing the names of 350 gasoline retailers her office claimed were 'scamming' motorists, while she hosted a press conference accusing these small businesses of 'cheating' the public. NJGCA investigated [image-nocss] these accusations, discovered that the report presented was entirely misleading, and countered her press conference to dispute these findings."
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Several weeks after Milgram's press conference, NJGCA filed an Open Public Records Act (OPRA) request to gain access to all documents used by the AG to compile her list. Its request was denied, and it filed a lawsuit in Superior Court to compel the Department of Consumer Affairs, as the custodian of these records, to release the documents. The lawsuit was settled several weeks ago and NJGCA now has possession of the records.
"NJGCA has scrutinized the documents and has found that they confirm our previous suspicions: the vast majority of the small businesses cited had only administrative or minor infractions that do not rise to the level of 'scamming' or dishonesty," said Risalvato. "Do these infractions need to be addressed? Absolutely. But these violations do not constitute retailers 'scamming' motorists or knowingly 'cheating' consumers. Most of the infractions were routine in nature; the professionals at the Department of Weights & Measures see these types of lapses daily."
He added, "The public will recall that the [AG] released the names of these 'violators' when gasoline prices were very high. The public was justifiably upset with the cost of gas and demanded action. [AG] Milgram pandered to the public under the false pretense that her efforts would somehow combat the high prices at the pump. The public wanted someone to blame and demanded someone's head on a platter. [She] wrongly offered up the heads of innocent gasoline retailers. Data clearly illustrates that most of these citations were not criminal or misleading."
Risalvato said the AG "never intended to be honest with the public about her findings. Instead, she found a few genuine violations, added a large group of minor infractions to the list, packaged it all together and hastily called a press conference. She then reprehensively labeled everyone on the list as having attempted to 'scam' and 'cheat' the motoring public. All evidence proves that this overly sensationalized report was presented solely to demonstrate that government was 'doing something' to protect motorists from high gas prices. It was feel-good political theater of the worst kind."
He said that of all the records reviewed, fewer than 15 retailers could truly be identified as violating the public trust. "Yet calling a press conference to cite less than 15 retailers would not have been as sensational to the public," Risalvato said. "The result? The [AG] knowingly lumped innocent businessmen in with the guilty to make larger headlines."
He continued, "Any retailer that deliberately attempts to 'scam' the public, 'cheat' consumers or behaves dishonestly should be harshly and swiftly prosecuted. Those kinds of underhanded establishments give all small businesses a bad name and gain an unfair advantage over honest retailers. They must be punished appropriately. Had the [AG] only listed those truly guilty of 'scamming,' then NJGCA would have openly and loudly applauded her efforts. Sadly, this was not the case."
Since the AG's report was publicized, a large number of those retailers cited have contacted NJGCA to report a loss of business due to their inclusion on the list, the group said. Motorists, reading the front page headlines, have refused to do business with their well-known or long-patronized neighborhood establishments, it said. The effects of the AG's "grandstanding" on those small businesses have been "staggering," said Risalvato.
"The consequences of the [AG's] report are far more devastating than any statistic can illustrate. It takes years to earn a good reputation in any business. Yet, thanks to the irresponsible manner in which these findings were packaged and presented, the reputations of honest retailers have been tarnished and destroyed in moments. Meanwhile, the [AG] was being boastful of a 'task force,' which was nothing more than another day of the good work that Weights & Measures conducts," Risalvato said.
The association said that in an attempt to placate critics, the Office of the AG recently circulated a press release (click here to view the release) clearing the names of 10 retailers for their minor administrative infractions, which Consumers Affairs Director David Szuchman said was to "set the record straight." There was no press conference and little media attention. "This falls about 300 stations short of 'setting the record straight'," said Risalvato.
"Our [AG] proclaims that deceptive behavior should not be tolerated, yet ignores her own dishonesty in selling this entire episode to the public. This kind of grandstanding is an action unbefitting her office. It is for these reasons that I call upon [AG] Anne Milgram to resign her office so that this fiasco is never again replicated in New Jersey", Risalvato concluded. "In her zeal to root out those who knowingly betray the public trust, the [AG] implicated an overwhelming number of innocent individuals. The damage she has caused these business owners, those they employ, and their families is incalculable. Behavior of this kind is truly beneath the office she holds. Either she knowingly agreed to this deception for political attention or was not effective enough to know what was going on. In either instance, she should abdicate her office and apologize to those she has so deeply wounded. The soiled reputations of those small-business owners deserve nothing less."
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