Attorney General's News Release

July 18, 2007

Five more southwest Missouri businesses to pay $29,931 in latest round of price-gouging settlements with Nixon

Springfield, Mo. — Attorney General Jay Nixon today announced five more southwest Missouri businesses will pay a total of $29,931 in settlements with Nixon as part of his investigation into alleged price gouging after the severe ice storms of Jan. 12-14. Nixon said the businesses - which include hotels, a gas station and a hardware store - are located in Springfield, Joplin, Ozark, Buffalo and Willard. Hundreds of consumers who paid too much for hotel rooms, gasoline and kerosene from the businesses will receive restitution as a result of the settlements.

“We are committed to ensuring that the complaints of those consumers who were victimized by outrageously high prices for necessities after last January’s brutal ice storm are answered, and today’s settlements illustrate that continuing commitment,” Nixon said. “The few businesses in the region that chose to take advantage of desperate citizens in the immediate aftermath of the storm continue to be held accountable for their actions.”

Missouri’s price-gouging regulations prohibit charging excessive prices for necessities in disaster areas, and price gouging is an unfair business practice under state consumer protection laws. Nixon announced the first round of legal actions in February and another in May after looking into more than 400 complaints regarding alleged price gouging. Those actions included five lawsuits and nine settlements that recovered $120,000 in restitution, penalties and payments to the state.

In this latest round of legal action, the Attorney General reached assurances of voluntary compliance with the following businesses:

• The Springfield Inn, located at 2355 North Glenstone in Springfield, will pay $7,900 in restitution, $1,000 to the Merchandising Practices Revolving Fund (MPRF) and a civil penalty of $1,100 to settle allegations that the hotel substantially raised the price of rooms after the storm.
• The Super 8 Motel, located at 2830 East 36th Street in Joplin, will pay $711 in restitution and $750 to the MPRF to settle allegations that the hotel substantially raised the price of rooms after the storm.
• The Comfort Inn, located at 1900 West Evangel in Ozark, will pay $2,720 in restitution, $5,000 to the MPRF and a civil penalty of $6,750 to settle allegations that the hotel substantially raised the price of rooms after the storm.
• Melton’s 64/73 Junction, located at 699 State Highway 54 in Buffalo, will pay $1,000 to the MPRF and an assessment of $1,000 in lieu of civil penalties to settle allegations that the business increased the price it charged for a gallon of gasoline by 50 cents per gallon after the storm.
• Hometown Equipment Rental and Hardware, located at 304 East Jackson in Willard, will pay an unfinalized amount of consumer restitution, $1,000 to the MPRF and an assessment of $1,000 in lieu of civil penalties to settle allegations that the business overcharged consumers in the sale of kerosene.

Nixon also encouraged any consumers who paid more than $800 to purchase a generator between Jan. 14 and Jan. 24, 2007 from the Fastenal located at 2109 E. Division in Springfield to contact the Attorney General’s Office concerning refunds. Consumers with a valid receipt should call the consumer protection hotline at (800)392-8222 or go to the Attorney General’s Web site at ago.mo.gov.

“We have a proven track record of coming down hard on price gouging,” Nixon said. “It is very important to send a message to anyone else who would consider trying this that we will always be ready to act on behalf of consumers.”

In December 2006, Nixon recovered nearly $38,000 in consumer restitution from a Farmington business over allegations of price gouging in the sale of portable generators in the wake of another winter storm. Previously, Nixon took action against eight gas stations in 2005 after Hurricane Katrina and against 48 stations in 2001 after Sept. 11 over allegations of price gouging. The stations paid almost $69,000 total to the state as a result of Nixon’s investigation.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818