MADISON, Wis. -- Wisconsin Attorney General Peggy Lautenschlager has announced a judgment against a gasoline retailer for illegally raising the posted prices of gasoline more than once in 24 hours in the days following Hurricane Katrina.
The judgment, against Oshkosh-based Lang Oil Inc., was entered into earlier this week by a Winnebago County Circuit Court where the action was filed. Under the terms of the judgment, Lang Oil will pay the state $1,219; $496 of the judgment will be allocated to an Oshkosh first responder's unit.
Lang Oil was ordered to abide by the law in the future, implement policies to ensure future violations not occur, and pay forfeitures and fines. The parties also stipulated that, in lieu of restitution, Lang Oil will make a payment to a Winnebago County emergency services unit.
While the penalties under this law can be negligible, the purpose of the law is clearit is a consumer protection provision designed not to punish businesses for making profits, but to ensure that the motor fuel industry does not take advantage of emergencies or other situations by increasing prices in violation of the law, Lautenschlager said. Wisconsin consumers are protected when this law is enforced because we demand companies not engage in these practices in the future.
The law requires that every wholesaler or other entity selling or distributing motor fuel in the state keep posted, in a conspicuous place, the net selling price per gallon of all grades of motor fuel and the amount of all taxes per gallon. Under the law, all prices posted shall remain in effect for at least 24 hours. The law provides up to $200 in forfeitures per violation.
The investigation was initiated when the Wisconsin Department of Agriculture, Trade & Consumer Protection received several consumer complaints against gas retailers accused in the wake of Hurricane Katrina of rapidly increasing gas prices. Wisconsin does not have an anti-price gouging statute, but many of the complaints evidenced violations of the price-changing law, the AG said. She said that she supports enacting anti-price gouging legislation.
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