Governor Kaine Signs Price Gouging Legislation
– Bills provide stronger tools for investigating, prosecuting, and deterring price gouging during emergencies –

RICHMOND – Governor Timothy M. Kaine today signed legislation that strengthens the Commonwealth’s ability to investigate, prosecute, and deter price gouging during natural disasters and other emergencies. House Bill 1094, introduced by Delegate Kristen Amundson, and Senate Bill 77, sponsored by Senator John Watkins, authorize additional emergency powers for the Governor, and are based on the experiences of Virginia and other states following Hurricanes Katrina and Rita in 2005.

HB 1094 gives the Governor the authority to order a supplier to cease and desist in charging an unconscionable price when there is a risk of causing a public panic. SB 77 extends the time frame beyond the typical 30 days that the price gouging statute is in effect.

“Hurricane Katrina highlighted some potential concerns with price gouging, especially with respect to gasoline and natural gas,” said Governor Kaine. “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 state will vigorously investigate, and the Attorney General’s Office will vigorously prosecute, those retailers believed to be price gouging during a time of emergency.”

This legislation also directs the Office of the Attorney General to immediately prosecute any case in which a retailer fails to comply with the Governor’s order.

The Governor was joined at today’s bill signing by Delegate Amundson, Senator Watkins, and Attorney General Robert F. McDonnell. Also in attendance were representatives from industry organizations that supported the legislation, including the Virginia Petroleum, Convenience, and Grocery Association, the Virginia Petroleum Council, Virginia Gasoline Marketers Council, and Retail Merchants Association.

Between April 24 and May 19, 2006, staff of the Division of Consumer Protection at the Virginia Department of Agriculture and Consumer Services responded to 122 consumer complaints involving motor fuel issues, and visited 99 locations specified in those complaints. Overall, officials found the number of motor fuel complaints to be relatively low, and there was no indication that vendors were charging artificially higher prices.

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