Roanoke area gas gouging settlements

Virginia Attorney General Bill Mims announced Thursday that legal action has been taken against the Main Street Citgo in Salem, for allegations of price gouging.

His office also announced legal settlements with Two Stars LLC, also known as Liberty Two Stars, in Salem, and Ran Express Stop, a gas station in Roanoke.

The gas stations allegedly violated Virginia’s Post-Disaster Anti-Price Gouging Act by charging unconscionable prices for gasoline after Gov. Tim Kaine declared a state of emergency Sept. 10, 2008, as Hurricane Ike approached the Gulf Coast.

Attorney General Mims said in a news release, “These are our third, fourth and fifth legal actions relating to the spike in gasoline prices seen in anticipation of Hurricane Ike last year, As we experience the 2009 hurricane season, I hope these settlements 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.”

Virginia’s Price Gouging Act, which requires a declared state of emergency to activate, went into effect July 1, 2004. Since then, the Attorney General’s Office has sued eight gas stations (three after Hurricane Katrina and five after Hurricane Ike).

Today’s action against Main Street Citgo in Salem is the first where an agreed settlement, known as an Assurance of Voluntary Compliance, was not filed at the same time.  The settling stations are required to set aside money for consumer restitution.  They also have agreed to make contributions to the American Red Cross Disaster Relief Fund, in lieu of paying civil penalties.

In addition, the stations are required to post signs on their front doors and near their gas pumps, telling customers that they are eligible for restitution if they made purchases at certain price levels on certain days. 

The companies are required to identify credit and debit card customers who purchased gasoline during the alleged price gouging and give refunds.

Liberty Two Stars and Ran Express Stop agreed to enter into settlements after being contacted by the Attorney General. Because Main Street Citgo declined to enter into a settlement, the Attorney General has filed suit against the gas station.