Franklin judge upholds anti-price gouging statutes
FRANKFORT — A Franklin Circuit Court judge upheld the constitutionality of the state’s anti-price gouging statute in a Monday decision. The ruling will allow Attorney General Jack Conway to pursue a lawsuit against two oil companies accused of raising gas prices in the wake of Hurricanes Katrina and Rita.
Franklin Circuit Court Judge Thomas Wingate ruled Monday that the state’s price-gouging statute protects consumers from unjustified price spikes during a declared state of emergency and that the statute provides notice to businesses when a declared state of emergency occurs.
The attorney general sued Marathon Petroleum Company and its parent company, Marathon Oil. Corp, and Speedway SuperAmerica in May 2007, alleging that the two chains jacked up retail and wholesale gas prices during declared states of emergency during Katrina and Rita.
The two companies challenged the constitutionality of the statute, saying that the state’s anti-price gouging statutes were vague, among other arguments.
Conway is asking for $89 million in damages plus penalties from Marathon and Speedway SuperAmerica. A trial date in the case has not yet been set, according to Conway’s office.
– Beth Musgrave
Filed Under: Jack Conway • State Government
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Wonder what affect this will have on future prices if they are forced to pay. What will KY do with the money?
Price gouging laws are dangerous and misguided. Because of price gouging laws the next time there is a Katrina or Rita there will be major shortages of gasoline. Yes, oil companies make more money but the high prices lower consumption and provide an incentive to ship fuel long distances to lessen the shortage.
Gasoline was shipped all the way from Europe to cover the shortage caused by Katrina and Rita. If you don’t allow prices to rise this gasoline won’t be exported to the US.
“two chains jacked up retail and wholesale gas prices”
This really is written at an eight-grade level, including the colloquialisms.
What Conway really needs to investigate is the collusion between gas stations in the same town or on the same corner. There is really no reason for four different gas stations, all with different brands, to have prices exactly the same or within a penny or two of each other.
Attractive section of content….
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