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Mich. AG files class action against propane company

By Legal News Line | Sep 24, 2014

LANSING, Mich. (Legal Newsline) - Michigan Attorney General Bill Schuette reached a settlement agreement with Ferrellgas and also filed a separate class action lawsuit against propane retailer AmeriGas on Monday following his office's ongoing investigation into hundreds of consumer complaints related to propane pricing and delivery last winter.

More than 600 consumers will receive a portion of the $100,000 settlement with Ferrellgas.

Schuette received a number of complaints against the company related to pricing in late January and early February. Among the complaints were allegations that customers who placed will-call propane orders just before prices increased did not receive the lower locked-in purchase price.

As part of the settlement, Ferrellgas has until Oct. 15 to credit customers.

The suit filed against AmeriGas in the Berrien County Circuit Court accuses the company of violating numerous provisions of the Michigan Consumer Protection Act, including price gouging, denial of pricing established in advance contracts and failure to honor prices quoted for telephone orders.

“I am confident that the action we are taking today will send the message to every propane retailer throughout our state that we will not hesitate to do whatever it takes to protect propane consumers in the winter ahead," Schuette said.

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