The companies and stations [image-nocss] that settled with the AG are Rocky Top Markets, for eight stations in East Tennessee; Pilot Corp. 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); 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).
Collectively, the settlements amount to the largest enforcement sweep under the State's price gouging statutes in the state's history.
"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," said Cooper.
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, thesState registered more than 4,000 calls alleging excessive pricing.
The AG's Office and the state Department of Commerce & Insurance analyzed all of the information received from consumers. The AG's Office reviewed the complaints, company costs and pricing data and followed up by demanding additional information from more than 100 stations. After reviewing all of the information, the AG settled with 16 companies and individuals, involving 27 retail stations in Tennessee. All of the settling defendants cooperated with the state's investigation.
All of the defendants that settled deny any wrongdoing and assert they settled to avoid the time and expense associated with litigation. The defendants that 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 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 more than $73,447.
In pursuing the settlements, the AG's goal was to obtain as much restitution as possible for consumers who purchased from these stations, he said.
Weigel operates nearly 50 dairy and convenience stores with gasoline, all within a 50 mile radius of corporate headquarters in Powell, Tenn.
Click herefor documents and details on individual settlements.
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