Gouging Law: Statements from Attorneys General and Governor

Attorney General McMaster: South Carolina Price Gouging Law In Effect
Columbia, S.C. - September 12, 2008 As of noon today, September 12, 2008, Attorney General McMaster has invoked the state's price gouging prohibition statute and issued the following statement:

"President Bush has declared a state of emergency in Louisiana and Texas due to Hurricane Ike. Pursuant to SC Code Section 39-5-145, the attorney general now gives notice of an "abnormal disruption of the market" for gasoline and other petroleum products in South Carolina.

Therefore, as of this notice, price gouging for gasoline and other commodities constitutes an unfair trade practice and a criminal misdemeanor. "Price gouging" requires the charging of an "unconscionable price" not attributed to additional costs or market fluctuations. An unfair trade practice violation carries a civil penalty of up to $5,000 per violation 39-5-110. In addition, the criminal penalty is a fine of up to $1,000 and imprisonment of no more than 30 days 39-5-145 (K).

Citizens should report inordinate and suspected violations immediately to local law enforcement. This office has also established a special email address -- GasPrices@SCAttorneyGeneral.com, and an information line at (803) 734-3970."

In most cases, the criminal prohibition against price gouging takes immediate effect upon the Governor's declaration of a state of emergency, or a similar declaration by the President of the United States, and only within the area for which the state of emergency has been declared. The prohibition remains in effect until the declaration expires or is terminated.

South Carolina law also provides for the State Attorney General to identify an "abnormal disruption of the market" in another part of the country that affects the market for a commodity in South Carolina. This abnormal condition in another state must follow a declaration of a State of Emergency by the President of the United States. The Attorney General can declare such a condition for fifteen (15) day periods, and may renew or cancel them.

During such declared period of market abnormality, it is illegal to rent or sell or offer to rent or sell a commodity at an "unconscionable price" within the state or other recognized area within the state.

Those commodities are defined as goods, services, materials, merchandise, supplies, equipment, resources, or other articles of commerce, and includes, without limitation, food, water, ice, chemicals, petroleum products, and lumber essential for consumption or use as a direct result of a declared state of emergency.

"Unconscionable price" means an amount charged, which either represents a "gross disparity" or "grossly exceeds" the average price available for those items and services in the same area thirty (30) days immediately before a declaration of a state of emergency.

Gov. Sanford Issues Statement on Gas Prices GOVERNOR ASKS CITIZENS FOR PATIENCE, TO CONSERVE GAS IN COMING DAYS

Columbia, S.C. - September 12, 2008 - Governor Mark Sanford issued the following statement today in response to a rise in gas prices triggered by fears of damage and supply disruptions tied to Hurricane Ike:

"It's unfortunate, but we've seen this movie before in South Carolina when supply disruptions were caused by Hurricane Katrina, and then by Hurricane Rita," Gov. Sanford said. "When that happened three years ago, we got through it as South Carolinians with common-sense conservation and patience - and I'd ask that South Carolinians do the same over the coming days.

"I'd respectfully suggest that means avoiding the temptation to rush out and fill up everything we have, because at the end of the day that's only going to make this pricing situation worse. Instead, this is a time to think of ways in which each of us can make a difference on what may come our way if refineries in Texas are significantly damaged. It might mean riding to the football games with a neighbor or on Sunday riding to church with a friend. It might mean watching a video at home rather than going to the movies or riding to work with a co-worker. The bottom line is there are a lot of things we can do to each make a difference, and I'd ask that we do so.

"That being said, we'll obviously be keeping a close eye on the situation to determine what if anything the state can do to help, including exploring options with the federal government to ease fuel transportation into the state."

Gov. Sanford is also joining with Attorney General Henry McMaster in asking for citizens' help in determining whether price gouging is occurring. Citizens are encouraged to report suspected price gouging to local law enforcement, or to call or email the Attorney General's office at 803-734-3970, or gasprices@scattorneygeneral.com.

From the North Carolina Governor's Office:

RALEIGH – This morning Gov. Mike Easley declared a state of “abnormal market disruption” under North Carolina law, which charges the Attorney General with enforcing the price gouging statute.

Easley issued the following statement concerning the situation:

“As a result of Hurricanes Gustav and Ike, oil refineries in Texas and Louisiana have temporarily interrupted some gasoline supplies to the pipelines that serve North Carolina. Therefore, there may be temporary limitations on our gas supply. However, wholesale gas prices are up less than 20 cents a gallon over the last few days. Therefore, consumers should not see prices rise substantially more than this rise in the wholesale price.

“Today I have declared a state of abnormal market disruption under North Carolina law and charged the Attorney General with enforcing the price gouging statute. This statute prohibits the charging of prices that are unreasonably excessive under the circumstances.

“We know that there will be some supply disruption, but we do not yet know the extent. Past events of this kind have lasted only a short time. I urge motorists to reasonably conserve gasoline until the situation is clearer. ”

On September 4, 2008, Gov. Mike Easley issued Executive Order No. 145: “Emergency Relief For Damage Caused By Tropical Storm Hanna And Other Related Storm Events Affecting The Atlantic Coast Region.” The executive order temporarily waived size and weight restrictions for vehicles traveling in the state to deliver storm relief, which also includes the delivery of fuel.

Share your pictures and video clips on gas prices with Amy Wood in her blog.