ALEXANDRIA, Va. -- Both the National Association of Convenience Stores (NACS) and the National Association of Truck Stop Operators (NATO) are urging retailers to make their congressional representatives aware of their stance on the gouging bills currently emerging from Congress.
The U.S. Senate Commerce, Science & Transportation Committeehas approved legislation (Senate Bill 1263) introduced by Senator Maria Cantwell (D-Wash.) to make gasoline price gouging a federal crime and put in place new federal protections to guard against market manipulation [image-nocss] by oil and gas companies. The committee's approval of the bill, the Petroleum Consumer Price Gouging Protection Act, marks the first time the panel has passed this legislation and sent it on to the full Senate.
Similarly, the House Bill 1252 is pending with a goal to protect consumers from price-gouging of gasoline and other fuels.
NACS sent an Action Alert yesterday urging members to let Congress know that efforts to protect consumers from unscrupulous activity through anti-price gouging legislation will serve only to punish independent business ownersand ultimately the consumer.
If enacted, this legislation would subject retailers to millions of dollars in fines and years in prison for violating an ambiguous definition of what constitutes price gouging. Retailers must know what they can and cannot do in response to market conditions.
The Action Alert encourages NACS members and their employees to contact their U.S. senators and representative and ask them to amend the legislation to:
Clearly define what constitutes a violation. Provide honest retailers with a defense to violation. Enable retailers to respond to market conditions. If this legislation is not amended, urge your senators and representatives to oppose the legislation.Meanwhile, NATSO put out a Call to Action urging members to contact Congress to let both the House and Senate know that they oppose the fuel price gouging legislation.
While Congress is attempting to protect consumers from price volatility, this legislation will have disastrous, unintended consequences affecting both retailers and consumers. Both H.R. 1252 and S. 1263 would subject retailers to millions of dollars in fines and imprisonment for price gouging.' Neither of these bills provide a clear definition of what price gouging isnor do they provide a mechanism for defense for retailers. The result is that in times of emergency, supply disruption or rapid wholesale price increases, retailers may have to close their locations rather than face civil and criminal charges for raising prices to cover their increased costs.
The Petroleum Marketers Association of America (PMAA) has also urged retailers to make their congressional representatives aware of their stance on the gouging bills. See related feature story in this issue of CSP Daily News.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.