AUSTIN, Texas -- A Dallas fuel retailer has settled with the Texas attorney general’s office on charges of price gouging during 2017’s Hurricane Harvey.
The Consumer Protection Division of the Texas Office of Attorney General had accused Dallas-based Bains Brothers LLC, which owns several gas stations in the Dallas-Fort Worth area, of price gouging during the state of disaster declared for Hurricane Harvey in the summer of 2017. In its September 2017 lawsuit against Bains Brothers, the Consumer Protection Division reported that regular-grade gasoline had been selling for $2.29 per gallon on Aug. 30, 2017, five days after Hurricane Harvey’s landfall. Less than 24 hours later, two of Bains Brothers’ stations in Carrollton and Arlington allegedly raised their price for regular to $6.99 per gallon.
The fuel price had increased at one site so quickly that the retailer reportedly removed the numbers from one side of the price sign, leaving the other side with a price much lower than what was being charged at the pump, according to the complaint. One customer saw an advertised price of $3.29 per gallon but was allegedly charged $6.99 per gallon at the pump. Another customer alleged that the fuel price increased 40 cents per gallon during the fill-up.
As part of the settlement, Bains Brothers will refund eligible consumers who paid $3.99 per gallon or more for regular gasoline on Aug. 31, 2017, at its Carrollton and Arlington locations.
“Price gouging is something that no Texan should be confronted with when there’s a declared disaster such as Hurricane Harvey,” said Texas Attorney General Ken Paxton in a statement. “This latest settlement reimburses those who were taken advantage of by businesses that charged excessive amounts for fuel, and it serves as warning that Texas’ price-gouging statute will always be vigorously enforced.”
After Hurricane Harvey, Paxton’s office had received “thousands” of consumer complaints about “inflated” gas prices. As of posting time, the Consumer Protection Division has finalized 53 price-gouging settlements with Texas gas stations over the complaints, and it continues to investigate other allegations. In July, the agency announced settlements with 48 retailers over price gouging during the storm.
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