Gas station settles price gouging claims, agrees to refunds

Nick Rees Oct. 7, 2008, 1:00am

Bill McCollum (R)

TALLAHASSEE, Fla. (Legal Newsline) -- A Florida gas station accused of price gouging after Hurricane Ike has agreed to reimburse anyone with a receipt who was overcharged for gasoline, under a settlement with the state attorney general.

Kelly Junior #9, a gas station in Quincy, Fla., will also pay the American Red Cross $2,000 under terms of the agreement and pay the costs of the state's investigation into the price gouging.

The price of unleaded gasoline at Kelly Junior #9, individually owned by S and K of Quincy, Inc., increased twice on September 12, starting at $3.99 and ending at $4.29.

State law bars certain types of businesses, including gas stations, from raising their prices during times of declared disasters.

"Businesses, no matter how small, will still be held fully accountable under the price gouging statute when we find evidence to support consumers' complaints," Attorney General Bill McCollum said.

Investigators estimate that Kelly Junior #9 sold 2,396 gallons of gasoline at the artificially inflated prices to more than 100 customers, increasing its profits almost $1,500 over a three day period.

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