Price Gouging Law Now in Effect; AG Vows To Enforce It
Published: September 12, 2008
Attorney General Troy King said that Alabama’s price gouging law was triggered and went into effect with the Governor’s declaration of a state of emergency earlier this afternoon. King has vowed to use the resources of his office to enforce it.
With gas prices across Alabama reported to have reached or exceeded $5 per gallon in some cities, hundreds of Alabamians are calling the Attorney General’s Office to report rising prices. Attorney General King warns unscrupulous businesses that are seeking to profit illegally at the expense of Alabamians that these practices will not be tolerated.
“We have laws to protect against those who would profiteer and take advantage of their fellow-citizens,” said Attorney General King. “It is wrong and against the law to illegally charge outrageous amounts for necessities that people must have in times of emergency. My staff and I understand that the soaring costs of fuel is working an extreme hardship on those in our state who are already struggling to live on fixed incomes and to provide for their families. I have directed my Consumer Protection Unit to respond aggressively to reports of wrongdoing.”
The state law that prohibits “unconscionable pricing” of items for sale or rent comes into play when the Governor has declared an official state of emergency. An unconscionable price is defined as one that is 25 percent or more than the average price charged in the same area within the last 30 days, unless the increase can be attributed to a reasonable cost. The penalty is a fine of up to $1,000 per violation, and those determined to have willfully and continuously violated this law may be prohibited from doing business in Alabama.
Attorney General King’s Consumer Protection Unit can be reached by calling toll-free to 1-800-392-5658 or though the Attorney General’s main web page at www.ago.state.al.us.
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Reader Reactions
I thought it was illegal for gas stations to not post on their road signage what their current price of graded gas was. Also if there is no crisis and gas shortages, as reported by the Anniston Star on 09/19, then why are there so many gas stations on HWY 431 and Hwy 21 from Oxford to Jacksonville with their pumps bagged and the price signs empty or off.
Friday evening, September 12th, the Jet Pep station in Fultondale Al raised their prices to $4.65 a gallon. They went from $3.55 to $4.65 somewhere in a 5 hour time span on that day. All other gas stations in the Fultondale area stayed under $3.99 a gallon. Now that they’ve been put under the microscope for price gouging, their price is $3.55 a gallon. What can I do about all this? I can take both of my vehicles to Jet Pep, fill them up for $3.55 gallon, and never ever use Jet Pep again!!!! The way I understand it, they were forced to reduce their price. So, it’s time for me to go and take advantage of them!! I’m tired of getting screwed by big oil companies.
I was told by close relatives that Gas stations were running out of gas and that gas prices were sky rocketing and so I rushed out to fill my half tank of gas to full. I went to shell on Winewood Road and their regular unleaded was out and so I drove across the street to Jet Pep. I thought that Jet Pep gas price was the same as Shell’s $3.99 (at least that is what they had on their billboard, Jet Pep had nothing) While filling up my tank of gas I realized that what I was paying was going up to thirty dollars which is what I would pay if I was on empty. When I stopped pumping the gas, I realized that Jet Pep was charging me $4.65 a gallon. I have the receipt to prove it. If that isn’t price gouging I don’t know what is! That was a rip off and someone should do something about it! Everyone who stopped by Jet Pep on Winewood Road across from Shell Gas station should have their money refunded and the owner of the Gas Station fined! I paid $30 to fill up a half tank of gas for a 1993 Toyota Corolla. If that isn’t ridiculous I don’t know what is!
What fancy words from our State Government to try and calm a scammed public. They will do NOTHING about the Price Gouging you wait and see. They will take the same attitude I heard one Alabama State Official take last night on the radio “The store owners have a right to make a living”. My reply to that is; sure they have a right to make a living, but not to rob the public!
As for Attorney General Troy King saying anyone who increase their prices more then 25% in the same area within the last 30 days is PRICE GOUGING . . . means NOTHING! The State will do NOTHING! And whoopee if they do! All the store owner gets is a fine of no more than $1000—and I’ll grant you they will be making FAR MORE than that off the gouging!
The State do anything about PRICE GOUGING . . . . Give Me A Break! Its the State that GOUGES prices to boat owners. Gas prices on Alabama Lakes & Rivers have ROAD TAXES on them! Most States “REMOVE” this on their waterways, NOT ALABAMA!
Alabama do anything about price gouging other than reciting pretty words . . . . when pigs fly!
How is the AG office going to punish going to identify and deal with the gasoline price gouging. It is state wide along with what appears to be daily price fixing. Both are illegal and punishable under the law. IN GOD WE TRUST
We live in Haleyville, Al. I am the assistant manager at a gas station there. I know for a fact that we received a load of gas on Thursday only. At 8:30 this morning gas was $3.69, at 10 it went to $3.99, and at 12:30 it went to $4.29. Tell me how they can raise our gas prices that high on the same load of gas we received and were charging $3.69. This is outrageous. In Austin, Tx, they are still charging $3.59 to $3.69. I know this because my manager’s son lives there. This needs to be put to a stop.
We live in Woodstock, Al. and pass by a local service station quite often. Today at 10:00am gas was $3.65 at 11:30 am it was $3.95 and once again at 8:15 PM it hit $4.79. Tell me they received 2 loads of gas at this tiny service station with only 2 pumps within this time frame. All over this area prices have jumped before any new loads were delivered, is this all legal?
All increases are due to speculation of the shutdown of the refineries. What a shame that everyone is out to make a profit due to a natural disaster.
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