June 26, 2009
LANSING
-Attorney General
Mike Cox today announced that 11 Michigan gas stations have entered into
compliance agreements with the State of Michigan due to allegations of price
gouging which followed Hurricane Ike's 2008 landfall near major domestic oil
processing facilities in Texas.
At the time of Hurricane
Ike's arrival on September 12, 2008, the department followed up on complaints of
alleged gouging and invited the public to submit detailed evidence with their
complaints. Cox then announced on September 17, 2008 that his office would
directly contact 16 gas stations for detailed pricing information resulting from
allegations of price gouging. As a result of this review, the department
demanded that 11 of the stations, whose reported prices ranged from $4.99 to
$5.39, enter into compliance agreements as a result of their questionable
pricing practices. The agreements will help these stations avoid violations of
the law.
The compliance agreements,
filed in Ingham County Circuit Court this week, require specific commitments
from stations to help prevent future allegations of price gouging, including:
promptly providing documentation at the request of the Attorney General's office
to verify unusual price spikes; ceasing any practice of raising prices in
response to consumer apprehension unless such increases can be justified by
billing records; and, in some cases, pay fines equivalent to identifiable
profits gained by stations due to the alleged gouging on September 12, 2008, the
day of Ike's landfall.
During the hurricane, Cox
worked closely with the Governor's Office, Michigan State Police, and local law
enforcement to stay abreast of the situation, sending agents into the field to
monitor prices and follow up on consumer tips. Cox thanked the various
departments for their cooperation, especially the Michigan State Police.
"These actions should send a
warning that gouging will not be tolerated," said Cox. "Drivers can be assured
that our office is monitoring gas prices and looking out for them everyday."
Cox's office continues to
monitor gas prices statewide on a daily basis. Since Hurricane Ike, Cox has
also enlisted the assistance of the State Police to help with price monitoring.
Consumers are encouraged to
report allegations of price gouging to the Attorney General's Consumer
Protection Division at 1-877-765-8388 or on line at
www.michigan.gov/ag. Consumers are also encouraged to keep their receipts
if they believe they are victims of price gouging.
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