March 19, 2003

            Lansing, MI – As time runs out on President Bush’s 48-hour ultimatum to Saddam Hussein, Attorney General Mike Cox today warned Michigan gas stations of the harsh penalties associated with gouging consumers during a time of war.

            “While the pressure on prices during this time of crisis is naturally intense and complex, the Attorney General’s office will be vigilant in protecting consumers from erratic and unwarranted spikes in the price of gasoline,” said Cox.  “Anyone looking to gouge consumers while our men and women risk their lives overseas will be dealt with swiftly and severely.”

            Cox noted that despite higher retail gas prices in recent months, there has not been any evidence of gas gouging.  Under the Consumer Protection Act a retailer is prohibited from charging a price that is “grossly excessive,” a figure determined by comparing the difference between the wholesale and retail costs of gasoline.   In order to protect consumers, the Attorney General’s office performs daily monitoring of statewide gasoline retail prices and wholesale costs to determine whether illegal price gouging is occurring.  Stations found to be gouging are subject to up to $25,000 in fines.

            “As a former marine, and father of a daughter serving in our armed forces, I pray there is a quick and decisive end to any possible military action,” said Cox.  “As a consumer, I hope any possible military action does not bring about a repeat performance by a select few in the gas industry.  However, if there is any evidence of illegal activity, my office will use every resource at its disposal to prosecute those who use this time of war to justify gouging consumers.”

            In the wake of the September 11, 2001 terrorist attacks, the Attorney General’s office charged over forty retailers with grossly excessive pricing.  The cases were settled with stations refunding overcharges to consumers. 

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For further information contact: Sage Eastman
517-373-8060 (Office)
State of Michigan, Department of Attorney General