Florida Attorney General Charlie Crist has filed the states second lawsuit over price gouging from Hurricane Katrina, accusing a Tallahassee gas station of unconscionably raising its gasoline prices 72 cents per gallon during the state of emergency.
Crists complaint alleges that Island Food Stores, Ltd., the Jacksonville-based fuel retailer that owns the Tallahassee station, improperly raised its prices even though the increases were not forced by market conditions at the time.
Island Food Stores owns and supplies BP/Amoco fuel to the station at 3436 Thomasville Road in Tallahassee. Island sets prices at its stations pumps.
Because of the stations convenient location adjacent to a major interstate leading to and from the hurricane-impacted area, both Hurricane Katrina victims fleeing the storm and emergency personnel trying to reach the affected areas were potential victims of the gouged prices.
Shortly following Katrinas devastation, the Attorney Generals Office received more than 1800 complaints about the skyrocketing prices of fuel. These complaints prompted Attorney General Crist to launch a statewide investigation, sending teams of investigators and sworn law enforcement personnel to locations throughout Florida to determine whether the rapid rise in gas prices met the legal definition of gouging.
While responding to complaints in Tallahassee, investigators noticed the Island stores exceptionally high prices and discovered that the station allegedly had hiked prices more than 70 cents per gallon for regular unleaded gasoline over a three-day period.
"Hurricane Katrina was one of the worst natural disasters our country has ever faced. People fled for their lives, many of them seeking refuge in Florida," said Crist.
"In addition, Florida served as a staging area for relief efforts going out toward the afflicted area. While I am proud of our state for providing a haven to those in need and sending help where required, it infuriates me that price gougers would target victims under such desperate circumstances. We will not let this stand."
Between August 31 and September 1, the price of regular unleaded gas sold at the Island station increased a total of 62 cents per gallon, even though the station had received no delivery of regular unleaded gas and encountered no increase in total costs. Midgrade gasoline increased 72 cents per gallon between August 31 and September 2, with no delivery or increase in cost to the station.
The stations profit margins tripled for regular unleaded gas from August 30 to September 1, and more than doubled for premium gas and tripled for midgrade gas from August 30 to September 2.
Island is charged with violating Florida's price gouging statute, which carries a maximum fine of $1,000 for each occurrence up to a total of $25,000 for multiple violations committed in a single 24-hour period.
Additionally, the business is charged with violating Florida's Unfair and Deceptive Trade Practices Act, which carries a penalty of $10,000 or $15,000 for any victims over the age of 60.
As of today, the Attorney General's Office had received close to 4,000 complaints about skyrocketing gas prices through its toll-free consumer hotline (1-866-9-NO-SCAM, or 1-866-966-7226) and email correspondence.
On September 9, Attorney General Crist filed a lawsuit against a Swifty Stars retail gas station in Tallahassee, with allegations similar to those against Island Food Stores. As part of his ongoing investigation into the rising price of gasoline, Crist has also subpoenaed four gasoline distributors seeking records of their deliveries into Florida. Those companies are Colonial Oil Industries, Murphy Oil USA, Motiva Enterprises (a subsidiary of Royal Dutch Shell) and Tate Oil Company.
During the record-setting 2004 hurricane season, the Attorney General's price gouging hotline received 8,911 complaints. After receiving those complaints, the office initiated 58 formal investigations and filed 13 price gouging lawsuits against hotels, generator businesses, tree removal companies and other businesses. To date, the Attorney General's Office has recovered approximately $725,000 in restitution for Florida consumers.
