NEWARK, N.J. -- Sunoco Inc. has voluntarily settled a lawsuit filed by the New Jersey Attorney General's Office, with a portion of the settlement proceeds funding an energy assistance program for low-income residents, said AG Zulima V. Farber and Consumer Affairs Director Kimberly Ricketts.
"We are committed to protecting the interests of New Jersey consumers, and that means making sure that businesses operating in the state adhere to our laws and treat our consumers fairly," said Farber. "This settlement shows that Sunoco is willing to meet those obligations."[image-nocss]
As reported in CSP Daily News, the AG's office filed suit in September 2005 against Sunoco, Amerada Hess, Motiva Shell and various independent gas station operators for alleged violations of the State Motor Fuels Act & Consumer Fraud Act.
In settling the lawsuit, Sunoco agreed to adhere to state law regarding the pricing of gasoline and the maintenance and availability of business records. Both sides agreed to settle the matter without any admission of any violation having occurred.
Sunoco has agreed to make a settlement payment of $325,000. These funds will be used to reimburse state and county investigative and legal costs. A portion of the funds will also be used to fund future consumer protection initiatives at the Division of Consumer Affairs, with $50,000 going to the Low Income Home Energy Assistance Program (LIHEAP) administered through the Department of Community Affairs, which addresses the home heating needs of low-income families in New Jersey.
"This settlement is a good example of how New Jersey can work hand in hand with businesses that operate in our state to achieve a productive outcome for our consumers," said Ricketts.
Separately, Farber recently issued a statement that takes on Exxon Mobil Corp.'s record profits, as well as gasoline pricing in general. The statement reads:
It's inexcusable that ExxonMobil has reaped the largest profit ever for a U.S. company when so many American families are struggling financially - struggling particularly to pay the record-high prices Exxon Mobil and other energy companies are charging for the gas those families need to get to work, to school and to the grocery store.
I know many federal lawmakers share my concerns, and I urge Congress to act immediately to enact new federal price gouging legislation and to require energy companies to refund their unjust gains to consumers.
As New Jersey Attorney General, I support state legislation sponsored by Senators Sacco and Ciesla that would raise the penalties that can be imposed on gas retailers who violate the New Jersey Motor Fuels Act. The Attorney General's Office relied on that statute and the New Jersey Consumer Fraud Act to file suit last September against three oil companies and several independent gas-station operators in connection with gas price increases after Katrina. New Jersey's enforcement action sent a strong message to the industry and has resulted in several settlements. However, the penalties in the Motor Fuels Act are outdated. Senators Sacco and Ciesla's bill would revise the penalties under the Act, which currently range from $50 to $200, increasing them to up to $1,500 for the first offense and up to $3,000 for each subsequent offense.
As Attorney General, I am charged with responsibility for protecting the interests of New Jersey consumers. Consumers have every right to be furious because they can connect the dots between the hole in their wallets and Exxon Mobil's $36 billion windfall. I intend to examine whether, in addition to supporting federal price-gouging legislation, we should expand our state price-gouging law, which applies only where a state of emergency has been declared by the Governor, so that it applies more broadly to unconscionable price hikes that have no legitimate economic justification.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.