Reported violation of Virginia Post-Disaster Anti-Price Gouging Act
Attorney General Bill Mims today announced a price gouging settlement with Pamplin Exxon Service Center, Inc., a gas station in Appomattox County.
The settlement relates to allegations that Pamplin Exxon violated the Virginia Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after Governor Kaine declared a state of emergency Sept. 10, 2008, as Hurricane Ike approached the Gulf Coast. The settlement, technically known as an Assurance of Voluntary Compliance, has been filed with the Circuit Court in Appomattox County.
“Virginia’s Post-Disaster Anti-Price Gouging Act leaves room for standard market forces to work in times of disaster and prohibits only the charging of unconscionable prices for necessary goods and services during those rare times,” Attorney General Mims said. “I am hopeful that our seventh price gouging settlement will send the message that we intend to enforce our statute. We will continue to do so in a reasonable and fair manner.”
In the Complaint filed along with the Assurance, the Attorney General alleges that certain prices Pamplin Exxon charged for gasoline on the evening of Friday, Sept. 12, 2008, were unconscionable as grossly exceeding the price the station charged during the 10 days immediately before the declaration. Specifically, the Complaint alleges that the following prices the station charged during these periods were unconscionable: the Regular gasoline prices of $4.699 and $4.999, the Mid-Grade price of $4.799 and $5.099 and the Premium prices of $4.899 and $5.259. The Regular gasoline price of $4.999 charged represented a 37.8 percent increase over its September 8 price of $3.620.
The settlement enjoins Pamplin Exxon from engaging in any of the practices alleged to violate the Virginia Post-Disaster Anti-Price Gouging Act, and the Virginia Consumer Protection Act, and requires Pamplin Exxon to set aside $500 for consumer restitution.
The settlement requires Pamplin Exxon to provide notice to its customers that they may be eligible for restitution by posting signs on its front door and on each individual gas pump. It also requires the company to identify credit and debit card customers who purchased gasoline at the prices and on the dates noted above and to credit a refund to their credit or debit cards for the appropriate amount of the overcharge.
The settlement further requires Pamplin Exxon to pay $1,250 to reimburse the Commonwealth for its costs, investigative expenses and attorneys’ fees in this matter. And the settlement requires Pamplin Exxon to make a contribution of $500 to the Salvation Army for disaster relief purposes. This payment is in lieu of a payment of civil penalties.
The Attorney General notes that Pamplin Exxon cooperated with his Office and with the Virginia Department of Agriculture and Consumer Services throughout the investigation.
