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Gas Price Gouging Complaints Top 500

State Staff Members Work Through Weekend Taking Calls

POSTED: 10:40 am CDT September 15, 2008
UPDATED: 6:12 pm CDT September 15, 2008

Tennessee's division of consumer affairs received over the weekend more than 500 complaints about gasoline price gouging and the phone calls and e-mails are still coming in.

Related: Call 1-800-342-8385 to report gas gouging | Link: Report Gas Gouging | Video | Monday 5 p.m. Report | Video: Interview With Consumer Affairs Dept. | Video | Video

State Department of Commerce and Insurance spokesman Chris Garrett said Monday that some of the office staff worked through the weekend and is still "busily" taking calls.

Tennessee Director of Consumer Affairs Mary Clement said she wanted consumers to know that the state is taking every call seriously and hope consumers will try not to panic.

Garrett said the state attorney general defines price gouging as "unreasonably raising prices of essential goods and services in an attempt to take advantage of consumers."

Garrett said he is not familiar with any specific formula or increase the AG's office might use to determine price gouging.

Auto club AAA reported Knoxville had the nation's highest average gasoline price at $4.65 Monday, and Tennessee's consumer agency said they have fielded more than 500 price-gouging complaints from around the state.

State Department of Commerce and Insurance spokesman Chris Garrett said Monday that some staffers worked through the weekend and were still "busily" taking calls.

Tennessee Director of Consumer Affairs Mary Clement said she wanted consumers to know that the state is taking every call seriously and hopes consumers will try not to panic.

The state attorney general defines price gouging as "unreasonably raising prices of essential goods and services in an attempt to take advantage of consumers," he said. Penalties for the misdemeanor can be as much as $1,000. Since Hurricane Ike disrupted energy production in Texas over the weekend, prices have jumped above $5 per gallon in parts of the country, with huge disparities within some states and even some neighborhoods.

Garrett said he is not familiar with any specific formula or increase the AG's office might use to determine price gouging.

Consumers may contact the office in Nashville at http://state.tn.us/consumer/GasPriceGouging.html or call, 615-741-4737, or toll-free, 1-800-342-8385, to report suspected price gouging. Consumers need to provide the name of the gas station, address and the price and grade of gasoline.

Jim Lott, a spokesman for AAA in Middle Tennessee, said the club's gas price survey showed the average per gallon cost in Tennessee jumped to $4.11 from $3.94 reported Sunday. He said the Monday report shows Knoxville at $4.65; Nashville, $4.05; Chattanooga, $3.97; and Memphis, $3.86.

He said the report showed Knoxville at No. 1 on the price list, a ranking typically claimed in Alaska.

Lott predicted gas prices will remain higher for "one to two weeks."

He declined to comment about price gouging, saying the high prices are mainly a result of what he called panic buying.

"There are some spot shortages," Lott said. "A lot of that is panic driven."

On Monday morning, Channel 4 found that many Mapco stations were out of nearly all grades of gas.

According to the state attorney general's office, only one gas station has been fined for price gouging since Hurricane Katrina hit the United States in 2005. The Chattanooga market had to pay $2,000 in restitution for price gouging.

Also, a La Quinta Motel in Memphis had to pay more than $14,000 after prosecutors said it raised its room prices.


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