WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | Attorney General announces price gouging settlement with Radford, Dublin gas stations
RICHMOND, Va. (AP) -- A southwestern Virginia gas station operator and the state have settled a price-gouging complaint.
Attorney General Bill Mims announced the settlement with L.V. Stone Inc. on Monday. The company operates service stations in Radford and Dublin.
According to the complaint, three of the company's Bucko's Pantry stores charged prices ranging from nearly $5 to nearly $6 a gallon for gasoline on Sept. 10, 2008, as Hurricane Ike approached the Gulf Coast.
The settlement requires Bucko's Pantry to set aside $400 for customer refunds and contribute $800 to the Red Cross Disaster Relief Fund. The company also will pay $2,800 to reimburse the state for the cost of its investigation.
Here is a statement from the Attorney General's office:
Attorney General Announces Price Gouging Settlement with Gas Stations in Radford, Dublin
RICHMOND - Attorney General Bill Mims today announced a price gouging settlement with L. V. Stone, Incorporated d/b/a Bucko's Pantry, a gasoline retailer with stations in Radford and Dublin.
The settlement relates to allegations that Bucko's Pantry violated the Virginia Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after Governor Kaine declared a state of emergency on September 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 for the City of Radford.
"This settlement will send a strong message that Virginia intends to enforce our Anti-Price Gouging Act," Attorney General Mims said. "Those who would take advantage of Virginians by price gouging for gasoline or other necessities will not be tolerated."
In the Complaint filed along with the Assurance, the Attorney General alleges that certain prices Bucko's Pantry charged for gasoline on the evening of Friday, September12, 2008, and the morning of Saturday, September 13, 2008, were unconscionable as grossly exceeding the prices the station charged during the 10 days immediately before the declaration. Specifically, the Complaint alleges that the following prices charged during these periods at three retail locations were unconscionable: Bucko's Pantry #1, 7554 Peppers Ferry Road, Radford, Regular ($5.799), Mid-Grade ($5.899), and Premium ($5.999); Bucko's Pantry #2, 629 E. Broad Street, Dublin, Regular ($5.699), Mid-Grade ($5.799), and Premium ($5.899); and Bucko's Pantry #4, 1700 First Street, Radford, Regular ($4.99), Mid-Grade ($5.099), and Premium ($5.199). The Complaint further alleged, as an example, that the Regular gasoline price of $5.799 charged at Bucko's Pantry #1 represented a 61 percent increase over its September 8 price of $3.599.
The settlement enjoins Bucko's Pantry 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 Bucko's Pantry to set aside $400 for consumer restitution. This amount is based, in part, on sales transaction receipts Bucko's Pantry provided identifying the individual gasoline transaction and/or shift sales made September 12 and 13 at the prices deemed unconscionable.
The settlement requires Bucko's Pantry 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 Bucko's Pantry to pay $2,800 to reimburse the Commonwealth for its costs, investigative expenses, and attorneys' fees in this matter. And the settlement requires Bucko's Pantry to make a contribution of $800 to the American Red Cross Disaster Relief Fund. This payment is in lieu of a payment of civil penalties.
The Attorney General notes that Bucko's Pantry cooperated with his Office and with the Virginia Department of Agriculture and Consumer Services, and its Office of Product and Industry Standards, throughout the investigation of this matter.
