Cooper began investigating possible price gouging by state gas stations after thousands of consumer complaints started pouring into his office on September 12. North Carolina's law against price gouging was triggered that day by the declaration of an abnormal [image-nocss] market disruption due to Hurricane Ike striking the Gulf Coast.
Including this current action, Cooper has subpoenaed owners of 36 stations in Anson, Ashe, Buncombe, Cherokee, Clay, Craven, Cumberland, Guilford, Iredell, McDowell, Mecklenburg, Montgomery, Stanley, Transylvania and Yadkin counties as part of his investigation. Earlier this month, two other station owners agreed to provide refunds to consumers for overpriced gasoline, and Cooper filed suit against another station. The investigation is continuing.
Cooper has now subpoenaed The Circle K Stores Inc. in Charlotte. Consumers reported that some Circle K stations charged them as much as $5.29 a gallon for gasoline. The company has 10 days to turn over information to the Attorney General's Office.
The AG's investigation revealed that The Corner Market station in Jefferson marked up its prices from $3.69 to $3.99 per gallon on September 12. Later in the day, the station further increased its prices from $3.99 to $5.29 per gallon. This means that The Corner Market overcharged consumers by more than $1,600 on September 12, according to the investigation.
Under an agreement signed by The Corner Market, the station will refund up to $1.69 per gallon to consumers who bought gas by credit card on September 12. The refunds will appear as credits to consumers' credit cards. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund.
The company will also pay $5,000 in civil penalties, which will go to North Carolina schools.
Cooper's investigation also found that Old Fort CITGO station in Old Fort overcharged consumers $1,897.17 on September 12 and 13, increasing the price of gasoline sold at its station from $3.99 to $4.99 per gallon. Cooper also claims Old Fort CITGO overcharged consumers $959.50 between September 12 and 17 for diesel fuel which was sold for as much as $4.89 per gallon.
Under an agreement signed by Old Fort CITGO, the station will refund consumers who paid by credit card the amount they were overcharged on September 12 and 13. The exact amount of refunds, which will appear as credits to consumers' credit cards, will vary depending on which grade of gasoline or diesel fuel they purchased. Consumers who paid cash have 30 days to present a receipt or other proof of purchase to the station for a refund. Old Fort CITGO will also pay $5,000 in civil penalties.
Both companies must provide the AG's Office with a sworn accounting of all refunds they make to consumers. Any amount that is unable to be returned to consumers will go to a special fund to provide energy assistance to people in Ashe and McDowell counties.
"North Carolinians let us know about possible price gouging at the pump, and we're working to put some money back in their pockets," Cooper said. "I urge more stations to agree to do right by their customers. We're continuing to investigate potential price gouging carefully, and we're taking action when we find evidence that consumers have been gouged."
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