Valdosta Daily Times

May 29, 2009

Gas stations fined for price gouging

By Malynda Fulton

VALDOSTA — Two Valdosta gas stations have been named among 65 in the state required to pay restitution for inflating gas prices following hurricane damage to Gulf Coast oil refineries last September.

According to the Governor’s Office of Consumer Affairs (GOCA) recent settlements have been reached for Oak Foods, located at 500 N. Oak St., and One Stop #3, located at 3245 Inner Perimeter Road.

Oak Foods has been ordered to pay restitution plus a $2,500 fine. One Stop #3 must pay restitution plus a $250 fine, reports state.

Among other area gas stations cited for gouging is Adel Truck Plaza in Adel, which was ordered to pay restitution and a $10,000 fine.

The Office of Consumer Affairs began the investigation of price gouging immediately after Gov. Sonny Perdue’s Executive Order on Sept. 12, 2008. The state subpoenaed records from stores as a result of more than 2,000 complaints from customers. Office of Consumer Affairs spokesperson Kathy Mendelson previously told The Times that the reported gas prices around the state were as high as $8.39 per gallon.

As of May 15, 91 cases have been resolved, 65 of which were found in violation of price gouging. Cases were evaluated on the individual facts and the settlements include fines, customer restitution or both. If a gas station operator was required to provide consumer restitution, he or she had to post signage stating that customers with receipts who were covered by the agreement were eligible for refunds, according to reports.

Under Georgia law, price-control statutes are activated upon the governor’s declaration of a state of emergency. During the declared state of emergency, “businesses may not sell any goods or services necessary to protect the health, safety or property of citizens at prices higher than the prices at which those same goods or services were offered before the declaration of a state of emergency. The only exception allowed is if the business can document that the price was increased only in an amount which accurately reflects an increase in the cost of the goods or services to the person selling the goods or services or an increase in the cost of transporting the goods or service into the area. Price increases are not allowed on stock that was on hand before the emergency was declared.”