JEFFERSON CITY, Mo. – The past week certainly was not a banner one, for the nation or for the petrleum marketing industry, as attorneys general in several states undertook new investigations into allegations of price gouging following the World Trade Center attacks.
Gasoline retailers in Missouri accused of raising their prices without cause following the terrorist attacks in New York and Washington must pay $1,000 or face lawsuits, Attorney General Jay Nixon announced Friday. And in Florida, more than 370 complaints of price gouging are being investigated, a spokeswoman for the state attorney general said.
In Missouri, Nixon said 28 stations have received letters requiring them to pay fines of $750 or three time their profits for Sept. 11 - whichever is larger - plus $250 in investigative costs for raising prices in the hours after the attacks on New York and Washington, D.C., the Associated Press reported yesterday.
Failure to pay by the end of business Oct. 1 would result in lawsuits under Missouri consumer protection laws seeking up to $1,000 fines for each transaction.
“Operators who do not agree to the terms of this settlement should be prepared for aggressive litigation efforts on the part of the state,” Nixon said.
The 28 stations cited so far are among 50 being investigated, and more could be sanctioned, Nixon said, adding that his office is still determining whether individual stations or suppliers ordered the increases.
Ron Leone, executive vice president of Missouri Petroleum Marketers & Convenience Store Association, told the Associated Press that most retailers did not raise prices. But Leone said the group supports Nixon's efforts to prevent price gouging above $2.50 a
gallon.
“I'm very proud of the vast majority of my members who stood tall and faced the events of September 11 with calm heads, dignity and patriotism,” Leon said in a telephone interview. “I'm proud of my members who took the brunt of the public's fear and
outrage and still managed to provide fuel to consumers at very reasonable prices.”
A team of investigators from Nixon's office went to more than 20 stations to look into reports of price gouging after hundreds of consumer complaints.
Meanwhile, the Florida state attorney general subpoenaed two central Florida gas stations for possible price gouging after last week's terrorist attacks yesterday. According to published reports yesterday, the state is asking the operators of the gas stations in question to substantiate alleged price increases.
"If any of these gas stations could show us that they did, indeed, incur an increased cost, then they would be permitted to charge that price,” Florida Attorney General Spokeswoman Jackie Dowd said. “We think that's unlikely because these are all the subject of complaints Tuesday afternoon,"
Stations can't raise their prices before receiving a new delivery of gasoline, Dowd said. In all, the state has subpoenaed 24 gas stations and has received 371 complaints of price gouging statewide.