FRANKFORT, Ky. (KT) – Attorney General Daniel Cameron announced a settlement Friday with an eastern Kentucky fuel retailer and convenience store, resolving allegations of price-gouging in the wake of the Colonial Pipeline shutdown, earlier this year.
Following the May 7 cyberattack on the Colonial Pipeline, which created a disruption in the delivery of gasoline, Cameron’s Office of Consumer Protection received eleven complaints of suspected price gouging of gasoline at Brothers Market in Girdler, Kentucky.
While investigating the complaints, the Knox County retailer admitted to increasing their gasoline prices to capitalize on increased buying spurred by the Colonial Pipeline shutdown. During their investigation, the Office of Consumer Protection discovered that the retailer had increased the price of regular gasoline by 9.3 percent to 19.4 percent and sold 6,860.04 gallons of regular gasoline, accumulating $5,666.40 in additional profit as a result of the inflated prices.
Special Attorney Rebecca Price worked with Brothers Market’s counsel and reached an agreement to settle allegations of unfair business practices in violation of the Kentucky Consumer Protection Act.
Under terms of the agreement, Brothers Market agreed to give up $5,666.40 in illegal profits, and to comply with the Kentucky Consumer Protection Act by not selling or offering to sell fuel at its station or any other station owned or operated by Brothers Market in Kentucky for unconscionable prices.
“Thanks to tips from concerned Kentuckians, we investigated increased fuel prices at Brothers Market and reached a settlement with the business for excessively increasing fuel costs to take advantage of consumers following the Colonial Pipeline shutdown,” Cameron stated.
If the retailer violates the Kentucky Consumer Protection Act again, the store will be liable for the waived civil penalties, totaling $41,160.24, and will face additional enforcement action by the Attorney General’s office.
To view a copy of the settlement, click here.
If you need to contact the Attorney General’s Office of Consumer Protection you may call 888-432-9257.
You can also do it online:
To file a price-gouging complaint, click here.
To file a scam complaint click here.
To complete a consumer complaint and mediation form, click here.
For complaints regarding utilities, click here.