In an outright warning to service station operators across the state of Michigan today, Michigan Attorney General Bill Schuette strongly suggests they ignore the urge to gouge consumers by jacking gasoline prices at the pump in the name of Hurricane Harvey.
Schuette is well aware that thanks to the Texas Gulf Coast Hurricane the nation’s largest oil refinery has been shut down and that other smaller refineries have been impacted by the unprecedented storm as well. Nevertheless, Schuette is warning that he will be watching closely and will guard against any attempt by gasoline stations to take advantage of consumers through either price gouging or price fixing.
Schuette knows that the refinery outage has the potential to have affects outside the states affected by the storm, but he is making it crystal clear that taking advantage of this type of disaster will not be tolerated.
In delivering his warning today, Schuette says, “Labor Day weekend is days away and that means an uptick in cars traveling roads. Combined with the aftermath of Hurricane Harvey means Michigan families may see an increase in prices at the pump.” He adds, “However, these circumstances do not constitute a free pass for gas stations to gouge consumers. We will not tolerate any unscrupulous behavior that violates Michigan law when it comes to gouging and price fixing.”
Should you become aware of direct evidence concerning a conspiracy between companies, or have verifiable evidence of a retailer charging a price “grossly in excess of the price at which similar property or services are sold,” you are encouraged to contact the Attorney General’s Consumer Protection Division at 1-877-765-8388 or file an online complaint at www.michigan.gov/ag.
For more information on gas prices in Michigan you can see Attorney General Schuette’s Consumer Alert: Increased Gas Prices? Again?
The Attorney General’s move is not simply a knee-jerk reaction to a potential threat. He tells us that every day, year round, his Consumer Protection team monitors the balance of wholesale and retail petroleum prices and profit margins in regions all around Michigan. Additionally, the Department receives and reviews consumer complaints and inquiries about individual stations. The Department investigates any time there is evidence that state law has been violated for gouging or price fixing.
Under the Michigan Consumer Protection Act, a retailer may not charge a price that is “grossly in excess of the price at which similar property or services are sold.” Anti-trust laws also prohibit gas stations from entering into agreements to arbitrarily fix prices in unison.
For example, as Attorney General, Schuette secured convictions for gasoline price fixing by five Michigan station owners in 2012. The Department has also entered into “compliance-agreements” with stations requiring them to submit to monitoring after they spiked prices well above the state-wide norm on a particular day or after a weather event.
