LR&S Inc. will pay $7,700 for alleged price gouging by its Four Sister Center and Yadkinville Food Mart stations in Yadkinville, and Steve Compton will pay $7,800 for alleged price gouging at Tire Pro of Troy, also known as Troy BP.
Including these agreements, Cooper and his Consumer Protection Division [image-nocss] have gotten $71,000 in consumer refunds, energy assistance funds and civil penalties from 14 gas stations as part of a price gouging investigation begun in the fall of 2008.
The AG's Office began investigating possible price gouging by North Carolina stations after thousands of consumer complaints started pouring in on Sept. 12, 2008. North Carolina's law against price gouging was triggered that day by the declaration of an abnormal market disruption due to Hurricane Ike striking the Gulf Coast.
Cooper filed suit in October of 2008 against Steve Compton, owner and manager of Tire Pro, contending that the station raised its prices on September 12 from less than $4 a gallon to $5.99 per gallon. No consumers purchased gasoline at that inflated price, according to the AG's investigation.
To resolve price gouging claims, Compton will pay $2,000 to an energy assistance fund, $5,000 in civil penalties to North Carolina schools and $800 to cover the costs of the investigation. (Click here to read the settlement agreement with Compton.)
Cooper filed suit against LR&S in June of 2009 based on evidence that Four Sisters Center station and Yadkinville Food Mart raised their retail prices for gas from under $4 a gallon to as much as $5.679 a gallon within a matter of hours on September 12.
That price hike increased the company's markup over wholesale costs by more than 400%, according to the AG's investigation.
To resolve price gouging claims, LR&S will pay $2,000 to an energy assistance fund, $5,000 in civil penalties to North Carolina public schools, and $700 to cover the costs of the investigation. LR&S will also pay refunds to consumers who can provide a receipt or other proof showing that they were overcharged for gasoline on September 12. LR&S cannot identify these consumers through its credit and debit-card processing system.
(Click here to read the settlement agreement with LR&S.)
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