MONTPELIER, Vt. -- Governor Jim Douglas last week signed legislation protecting consumers in the state of Vermont from unconscionably high prices for petroleum products at the pump and at home.
The bill was introduced by State Senator Wendy Wilton (R) and co-sponsored by State Sen. Kevin Mullin (R).
Douglas said the new law allows action to be taken during a market emergency, which can be declared by the governor in circumstances like severe weather, electrical supply shortages and acts of war or terrorism.
This bill was designed to offset the skyrocketing price of gasoline and heating fuel during market emergencies, the governor said. It provides important provisions for keeping the price of gasoline and heating fuel within a reasonable range for consumers and gives local dealers protections of their own in doing business with larger oil suppliers.
The new law also protects consumers entering into guaranteed price plans and prepaid contracts with home heating oil, kerosene or liquefied petroleum gas dealers by requiring the terms of the contract to be fully and clearly disclosed in writing, the governor added.
Now, dealers must have secured a futures contract, surety bond, or line of credit to assure the consumer that they can adequately supply them with fuel for the length of the contract, Douglas said.
Wilton said she introduced the bill after it was suggested by one of her constituents, Philip Mayo of Castleton, added a report by The Rutland Herald. It's nice to know that one person can make a difference, Mayo told the newspaper. Fuel in this country is a national issue. When companies make every citizen in this country hostage to fuel, we're hurting the national economy.
The bill says a price is unconscionably high if there is a gross disparity between the price charged and the price just before the market emergency, as well as other the prices in the area.
Under the law, penalties would not be brought against dealers who had to pay higher prices themselves due to the emergency. Wilton said that provision would help gas station owners who are simply responding to price increases from their distributors, pushing blame up the distribution chain.
Wilton said the state Attorney General's Office would investigate claims of gouging under the Vermont Consumer Fraud Act. The act imposes civil fines of up to $10,000 for each violation.
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