Attorney General settles gas gouging case against Montgomery Co. gas station

Virginia Attorney General Bill Mims says it has reached a settlement with the Shawnee Mini-Mart in Mongtomery County, following a gas-gouging complaint in the days leading up to Hurricane Ike last year.

The complaint alleged that the business raised it's prices 36% over a period of four days.

A news release from the Attorney General's Office says the settlement requires:

• Shawnee Mini-Mart to provide notice to its customers that they may be eligible for restitution by posting signs on its front door and on each gas pump


• Shawnee Mini-Mart 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 amount of the overcharge


• Shawnee Mini-Mart to pay $1,200 to reimburse the Commonwealth for its costs, investigative expenses and attorneys’ fees in this matter


• Shawnee Mini-Mart to make a contribution of $500 to the American Red Cross Disaster Relief Fund. This payment is in lieu of a payment of civil penalties

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Read the full news release from the Attorney General's Office below:

RICHMOND – Attorney General Bill Mims today announced a price gouging settlement with “7 Hills, Inc.,” doing business as Shawnee Mini-Mart, a gas station in Montgomery County.

The settlement relates to allegations that Shawnee Mini-Mart violated the Virginia Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after Gov. Timothy M. Kaine declared a state of emergency Sept. 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 of the County of Montgomery.

“This settlement is the sixth legal action relating to the spike in gasoline prices seen in anticipation of Hurricane Ike last year,” Attorney General Mims said. “I hope these actions send a strong message that Virginia enforces its Anti-Price Gouging Act. We will not tolerate those who take advantage of Virginians by price gouging for gasoline or other necessities following a disaster.”

In the Complaint filed along with the Assurance, the Attorney General alleged that prices Shawnee Mini-Mart charged for gasoline on Friday, September 12, Saturday, September 13, 2008, and Sunday, September 14, 2008, were unconscionable as grossly exceeding the prices the station charged during the 10 days immediately before the declaration. The Complaint alleges that the following prices the station charged during these periods were unconscionable: Regular ($4.869), Mid-Grade ($4.699, $4.969) and Premium ($4.799, $5.069). The Complaint further alleges that the Regular gasoline price of $4.869 represented a 36 percent increase over the station’s September 9 price of $3.569.

The settlement enjoins Shawnee Mini-Mart 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 Shawnee Mini-Mart to set aside $250 for consumer restitution. This amount is based, in part, on sales transaction records Shawnee Mini-Mart provided identifying gasoline transaction sales made September 12, 13 and 14 at the prices deemed unconscionable.

The settlement requires Shawnee Mini-Mart to provide notice to its customers that they may be eligible for restitution by posting signs on its front door and on each 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 amount of the overcharge.

The settlement further requires Shawnee Mini-Mart to pay $1,200 to reimburse the Commonwealth for its costs, investigative expenses and attorneys’ fees in this matter. And the settlement requires Shawnee Mini-Mart to make a contribution of $500 to the American Red Cross Disaster Relief Fund. This payment is in lieu of a payment of civil penalties.

The Attorney General notes that Shawnee Mini-Mart cooperated fully with his office and with the Virginia Department of Agriculture and Consumer Services throughout the investigation.