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Consumer Protection


Consumer Protection News

House Plan Protects Consumers, Cracks Down on Gas Gouging

Plan will help speed up investigations, reimburse residents who get gouged

LANSING – With gas prices continuing to hover near the $4 mark, the House today passed a plan that will protect working families from being taken advantage of at the pump by cracking down on gas gouging by unscrupulous gas station owners. The move comes in the wake of some gas stations hiking gas prices to more than $5 last weekend as Hurricane Ike made landfall in Texas.

"Gas gouging is a crime – it's as simple as that," said State Representative Robert Dean (D-Grand Rapids), a sponsor of the plan. "While the vast majority of our local gas station owners play by the rules, some are more interested in making a quick buck at the expense of our hard-working residents. This plan will put needed protections in place to ensure that our working families aren't being taken advantage of during these tough times."

The current average for a gallon of regular gas is $4.15, according to the AAA Daily Fuel Gauge Report. That's a 28-cent increase from a month ago, and an increase of $1.17 from a year ago. Last week, as Hurricane Ike ravaged the Gulf Coast, some parts of the state recorded gas prices spiking to over $5 per gallon.

With more than two months left in the hurricane season, which officially ends Nov. 30, Michigan lawmakers today took action to protect consumers from more incidents of gas gouging. The plan passed by the House would give the Attorney General's Office additional tools to speed up investigations of alleged gas gouging and expand the state's ability to recover damages for consumers victimized by gas gouging. The plan also clearly defines gas gouging in Michigan's Consumer Protection Act to make it easier for the Attorney General's Office to prosecute violators.

"Blowing the whistle on unscrupulous gas stations is the only way they will be held accountable for gouging our consumers," said State Representative Mary Valentine (D-Norton Shores), a sponsor of the plan. "Enough is enough. We must take action to protect our residents and put an end to these illegal practices."

 

Copyright:

© 2009 Michigan House Democrats

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P.O. Box 30014 • Lansing, MI 48909-7514

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