Pamplin Exxon Service Center, Inc., a gas station in Appomattox County, and "7 Hills Inc.," doing business as Shawnee Mini-Mart, a gas station in Montgomery County, both were fined and enjoined from engaging in further gouging practices.
In both cases, the settlements relate to allegations that the retailers violated the Virginia Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after Gov. Tim Kaine declared a [image-nocss] state of emergency Sept. 10, 2008, as Hurricane Ike approached the Gulf Coast. The settlements, technically known as an Assurance of Voluntary Compliance, were filed with the Circuit Court in each retailer's respective county.
"Virginia's Post-Disaster Anti-Price Gouging Act leaves room for standard market forces to work in times of disaster and prohibits only the charging of unconscionable prices for necessary goods and services during those rare times," Mims said. "I am hopeful that [these] price-gouging settlements will send the message that we intend to enforce our statute. We will continue to do so in a reasonable and fair manner."
In the first complaint, the Attorney General alleges that certain prices Pamplin Exxon charged for gasoline on the evening of Sept. 12, 2008, were unconscionable as grossly exceeding the price the station charged during the 10 days immediately before the declaration. Specifically, the complaint alleges that the following prices the station charged during these periods were unconscionable: the regular gasoline prices of $4.699 and $4.999, the mid-grade prices of $4.799 and $5.099 and the premium prices of $4.899 and $5.259. The regular gasoline price of $4.999 charged represented a 37.8% increase over its Sept. 8 price of $3.620, according to the AG's office.
The settlement enjoins Pamplin Exxon from engaging in any of the practices alleged to violate the Virginia Post-Disaster Anti-Price Gouging Act, and the Virginia Consumer Protection Act, and requires Pamplin Exxon to set aside $500 for consumer restitution.
The settlement further requires Pamplin Exxon to pay $1,250 to reimburse the commonwealth for its costs, investigative expenses and attorneys' fees in this matter. And the settlement requires Pamplin Exxon to make a contribution of $500 to the Salvation Army for disaster relief purposes. This payment is in lieu of a payment of civil penalties.
Meanwhile, in the second complaint, the Attorney General alleged that prices Shawnee Mini-Mart charged for gasoline on Sept. 12, 13 and 14, 2008, were unconscionable as grossly exceeding the prices the station charged during the 10 days immediately before the declaration. The complaint alleges that the following prices the station charged during these periods were unconscionable: regular ($4.869), mid-grade ($4.699, $4.969) and premium ($4.799, $5.069). The complaint alleges that the regular gasoline price of $4.869 represented a 36% increase over the station's Sept. 9 price of $3.569.
The settlement enjoins Shawnee Mini-Mart from engaging in any of the practices alleged to violate the Virginia Post-Disaster Anti-Price Gouging Act, and the Virginia Consumer Protection Act, and requires Shawnee Mini-Mart to set aside $250 for consumer restitution. This amount is based, in part, on sales transaction records Shawnee Mini-Mart provided identifying gasoline transaction sales made over the weekend in question at the prices deemed unconscionable.
The settlement further requires Shawnee Mini-Mart to pay $1,200 to reimburse the commonwealth for its costs, investigative expenses and attorneys' fees in this matter. And the settlement requires Shawnee Mini-Mart to make a contribution of $500 to the American Red Cross Disaster Relief Fund. This payment is in lieu of a payment of civil penalties.
The settlements require both retailers to provide notice to their customers that they may be eligible for restitution by posting signs on its front door and on each individual gas pump. Both companies also must identify credit- and debit-card customers who purchased gasoline at the prices and on the dates noted above and to credit a refund to their credit or debit cards for the appropriate amount of the overcharge.
The Attorney General noted that both retailers cooperated fully with his office and with the Virginia Department of Agriculture and Consumer Services throughout the investigation.
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