Virginia Gov. Tim Kaine signed legislation Tuesday that would stop price-gouging retailers in their tracks.
The legislation, sponsored by Del. Kristen Amundson, D-Mount Vernon, and Sen. John Watkins, R-Midlothian, also strengthens the attorney general’s power to investigate and prosecute price-gouging during a natural disaster in a timely manner.
“Hurricane Katrina highlighted some potential concerns with price-gouging, especially with respect to gasoline and natural gas,” Kaine said in a statement.
“As we enter a period of peak summer driving, retailers should not be blamed for high prices for reasons beyond their control, but price-gouging is never acceptable.”
The General Assembly enacted price-gouging legislation after 2003’s Hurricane Isabel, but the aftermath of Hurricanes Katrina and Rita provided “an opportunity to find out what worked and what didn’t. … What was missing was the ability to respond really very quickly,” Amundson said.
“It might be chain saws, baby diapers … anything that gets in short supply could potentially become an item an unscrupulous person might take advantage of the public and sell.”
Two Northern Virginia gas stations were the targets of the only price-gouging suits in the state, but investigations continue, said Tucker Martin, a spokesman for Attorney General Bob McDonnell.
After the governor or the president declares a state of emergency, the governor has the power to send a state trooper to a retailer with a cease-and-desist order to stop inflated prices and “immediately set” the new price, said Kevin Hall, a Kaine spokesman.
If the retailer does not comply, the attorney general can prosecute at once.
Price-gouging in VA.
» Centreville Shell charged $2.80 a gallon in the days prior to Hurricane Katrina.
» On Sept. 2, the station charged $5.99 for the same gas.
» A similar situation occurred at Discount Tire & Gas in Falls Church, with gas costing $4.79 after the hurricanes.
» Virginia successfully prosecuted, returning money to the victims.
» The judgment also required owners to donate to the Red Cross.
» Virginia’s price-gouging consumer hot line is 800-451-1525.
