Fuels

Texas AG Files Legal Action Against Petroleum Wholesale

Investigation revealed Sunmart pumps delivered less fuel than advertised

AUSTIN, Texas -- Texas Attorney General Greg Abbott took legal action yesterday against Petroleum Wholesale LP after an investigation by the Texas Department of Agriculture (TDA), as reported in CSP Daily News last week, found that The Woodlands-based company 's gas stations routinely failed to pump the amount of fuel its customers actually purchased. "Texans are paying record gas prices, and when they purchase a gallon of gas, they expect to receive a full gallon," Abbott said. "[The] enforcement action charges the defendant with shortchanging Texas drivers at the pump."

Petroleum Wholesale, [image-nocss] which operates Sunmart Travel Centers & Convenience Stores in several states, is charged with violating the Texas Deceptive Trade Practices Act (DTPA) by maintaining fuel pumps that were improperly calibrated in a manner that benefited the company financially. From July 18 to July 20, TDA inspectors conducted Operation Spotlight, an effort to test approximately 1,700 Sunmart pumps. The investigations revealed that 985 pumps were dispensing less than a full gallon of gas or diesel fuel; 15 Sunmart stations had 100% of their pumps calibrated in the company 's favor.

Click herefor video of the investigation.The attorney general's enforcement action also charges Sunmart with intentionally obstructing TDA 's investigation. Less than one day into their three-day investigation, TDA inspectors discovered that the defendant dispatched pump calibration technicians to several of its locations ahead of inspectors. Additionally, some Sunmart stations put "out of order" signs on their pumps in an effort to prevent them from being inspected, telling state inspectors that the pumps were "out of order" or "out of gas." However, when TDA inspectors turned on these pumps, the inspectors found that they contained gasoline and were operational.

The attorney general is seeking civil penalties of up to $20,000 per violation of the DTPA as well as attorneys' fees and customer restitution.

The court filing marks the attorney general's second enforcement action against Petroleum Wholesale in less than two months. On June 19, Abbott charged the company with violations of the Identity Theft Enforcement and Protection Act for improperly dumping hundreds of customer records that contained sensitive information. According to investigators, the company carelessly exposed sales receipts with customers' names and full credit or debit card numbers with expiration dates, returned checks and other documents bearing customers' names, driver's license and Social Security numbers. The case is pending.

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