(Hartford, CT) – Attorney General William Tong today announced Bridgeport-based Nunes Auto Repair has paid $7,000 for failure to lower its prices by 25 cents per gallon on April 1 as required by the gas tax holiday suspension. An investigation by the Office of the Attorney General found that Nunes Auto did not lower its price on regular grade gas until April 4 and the gas retailer consistently failed to fully lower prices on its mid- and premium-grade gas.

“The gas tax holiday was enacted—and extended—to give families a break. Nunes Auto knew the rules, and kept charging consumers for a tax the station wasn’t paying, even after they knew they were under investigation. Not all price increases constitute price gouging or violate the law, but when businesses do take advantage of consumers my office will enforce the law,” said Attorney General Tong.

The gas tax holiday began on April 1 and has been extended through to November 30. During this time, the 25-cent state tax on gasoline is suspended. The law required that retailers reduce their price per gallon by the amount of the excise tax, 25 cents, on April 1. Any gas station suspected of charging that tax, or a portion of that tax, during this gas tax holiday will be subject to investigation by the Office of the Attorney General pursuant to the Connecticut Unfair Trade Practices Act. Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against retailers found to be in violation of this law and seek appropriate relief, including injunctive terms, restitution, and civil financial penalties designed to deter future unscrupulous sellers.

The Office of the Attorney General has received 306 complaints regarding gas prices since March, both regarding the gas tax holiday and general gas price gouging complaints. All complaints were reviewed. Of those, the office initiated 12 gas tax-related investigations and 93 price-gouging investigations. There have been two enforcement actions to date, including Nunes Auto, regarding gas tax violations. Other investigations remain open and ongoing.

Consumers may file complaints online using the Office of the Attorney General complaint portal: https://www.dir.ct.gov/ag/complaint/

Not every increase, or decrease, in gasoline prices is related to the $.25 tax or constitutes price gouging. Every complaint will be investigated and all facts will be assessed on a case-by-case basis. You can help our investigations by sharing as much detail as possible in your complaints, including receipts if possible. Please include in your complaints the address of the gas station, the date and time of your purchase, and the exact price you paid.

Abnormal Market Disruption

An “Abnormal Market Disruption” in gas prices has triggered additional consumer protections through to November 27. An earlier declaration expired and was once again triggered on October 26.

During an abnormal market disruption, it is unlawful to charge an “unconscionably excessive price” for energy resources, including gasoline, electricity, and home heating oil. An “unconscionably excessive price” may occur when there is a gross disparity between the price during the market disruption and the price in the ordinary course of business immediately prior to the market disruption and the price is not attributable to additional costs. Unlike the retail price gouging statute, the abnormal market disruption declaration covers unconscionably excessive prices charged at the retail, distributor and wholesale levels.

State statute requires that the Department of Energy and Environmental Protection monitor the wholesale price of gasoline in the Hartford and New Haven areas. When the wholesale price of gasoline is over $3.00 per gallon and the daily price change is over 15 percent when compared to any of the last 90 days, DEEP is required to notify the Office of the Attorney General and Department of Consumer Protection of an “abnormal market disruption.” Increases in home heating oil prices do not trigger the abnormal market disruption statute.

“Both gas and home heating oil prices are a huge burden for families right now, here in Connecticut and globally. Price gouging during an abnormal market disruption is not just wrong, it’s illegal. There are many factors contributing to these volatile prices that are not necessarily due to any inappropriate profiteering. But if you see someone charging excessive prices and suspect wrongdoing, I want to know,” said Attorney General Tong. 

Price Gouging Statutes

During declarations of emergency, price gouging is against Connecticut law. Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against price gougers and seek appropriate relief, including injunctive terms, restraining orders, restitution, and civil financial penalties designed to deter future unscrupulous sales.

Attorney General Tong has previously sought reforms to the state’s ability to combat price gouging during an emergency. “An Act Concerning the Authority of the Office of the Attorney General to Bring an Action Against a Seller Who Engages in Price Gouging During a Disaster or Emergency” was considered last legislative session, and would have extended the state’s ability to bring price gouging enforcement actions against bad actors and sellers higher up the supply chain.

Connecticut’s current retail price gouging statute only applies to retail sales, excluding wholesale and sales within the supply chain.

Assistant Attorneys General Joe Gasser and Kim McGee, Paralegal Specialist Casey Rybak, Investigator Caylee Ribeiro and Deputy Associate Attorney General Mike Wertheimer, head of the Consumer Protection Section, assisted the Attorney General in this matter.

ATTORNEY GENERAL TONG ANNOUNCES ENFORCEMENT ACTION AGAINST BRIDGEPORT GAS STATION OVER GAS TAX VIOLATION

(Hartford, CT) – Attorney General William Tong today announced Bridgeport-based Nunes Auto Repair has paid $7,000 for failure to lower its prices by 25 cents per gallon on April 1 as required by the gas tax holiday suspension. An investigation by the Office of the Attorney General found that Nunes Auto did not lower its price on regular grade gas until April 4 and the gas retailer consistently failed to fully lower prices on its mid- and premium-grade gas.

“The gas tax holiday was enacted—and extended—to give families a break. Nunes Auto knew the rules, and kept charging consumers for a tax the station wasn’t paying, even after they knew they were under investigation. Not all price increases constitute price gouging or violate the law, but when businesses do take advantage of consumers my office will enforce the law,” said Attorney General Tong.

The gas tax holiday began on April 1 and has been extended through to November 30. During this time, the 25-cent state tax on gasoline is suspended. The law required that retailers reduce their price per gallon by the amount of the excise tax, 25 cents, on April 1. Any gas station suspected of charging that tax, or a portion of that tax, during this gas tax holiday will be subject to investigation by the Office of the Attorney General pursuant to the Connecticut Unfair Trade Practices Act. Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against retailers found to be in violation of this law and seek appropriate relief, including injunctive terms, restitution, and civil financial penalties designed to deter future unscrupulous sellers.

The Office of the Attorney General has received 306 complaints regarding gas prices since March, both regarding the gas tax holiday and general gas price gouging complaints. All complaints were reviewed. Of those, the office initiated 12 gas tax related investigations and 93 price gouging investigations. There have been two enforcement actions to date, including Nunes Auto, regarding gas tax violations. Other investigations remain open and ongoing.

Consumers may file complaints online using the Office of the Attorney General complaint portal: https://www.dir.ct.gov/ag/complaint/

Not every increase, or decrease, in gasoline prices is related to the $.25 tax or constitutes price gouging. Every complaint will be investigated and all facts will be assessed on a case-by-case basis. You can help our investigations by sharing as much detail as possible in your complaints, including receipts if possible. Please include in your complaints the address of the gas station, the date and time of your purchase, and the exact price you paid.

Abnormal Market Disruption

An “Abnormal Market Disruption” in gas prices has triggered additional consumer protections through to November 27. An earlier declaration expired and was once again triggered on October 26.

During an abnormal market disruption, it is unlawful to charge an “unconscionably excessive price” for energy resources, including gasoline, electricity, and home heating oil. An “unconscionably excessive price” may occur when there is a gross disparity between the price during the market disruption and the price in the ordinary course of business immediately prior to the market disruption and the price is not attributable to additional costs. Unlike the retail price gouging statute, the abnormal market disruption declaration covers unconscionably excessive prices charged at the retail, distributor and wholesale levels.

State statute requires that the Department of Energy and Environmental Protection monitor the wholesale price of gasoline in the Hartford and New Haven areas. When the wholesale price of gasoline is over $3.00 per gallon and the daily price change is over 15 percent when compared to any of the last 90 days, DEEP is required to notify the Office of the Attorney General and Department of Consumer Protection of an “abnormal market disruption.” Increases in home heating oil prices do not trigger the abnormal market disruption statute.

“Both gas and home heating oil prices are a huge burden for families right now, here in Connecticut and globally. Price gouging during an abnormal market disruption is not just wrong, it’s illegal. There are many factors contributing to these volatile prices that are not necessarily due to any inappropriate profiteering. But if you see someone charging excessive prices and suspect wrongdoing, I want to know,” said Attorney General Tong. 

Price Gouging Statutes

During declarations of emergency, price gouging is against Connecticut law. Acting in coordination with the Department of Consumer Protection, the Office of the Attorney General may file suit against price gougers and seek appropriate relief, including injunctive terms, restraining orders, restitution, and civil financial penalties designed to deter future unscrupulous sales.

Attorney General Tong has previously sought reforms to the state’s ability to combat price gouging during an emergency. “An Act Concerning the Authority of the Office of the Attorney General to Bring an Action Against a Seller Who Engages in Price Gouging During a Disaster or Emergency” was considered last legislative session, and would have extended the state’s ability to bring price gouging enforcement actions against bad actors and sellers higher up the supply chain.

Connecticut’s current retail price gouging statute only applies to retail sales, excluding wholesale and sales within the supply chain.

Assistant Attorneys General Joe Gasser and Kim McGee, Paralegal Specialist Casey Rybak, Investigator Caylee Ribeiro and Deputy Associate Attorney General Mike Wertheimer, head of the Consumer Protection Section, assisted the Attorney General in this matter.

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By Stephen Krauchick

DoingItLocal is run by Steve Krauchick. Steve has always had interest with breaking news even as an early teen, opting to listen to the Watergate hearings instead of top 40 on the radio. His interest in news spread to become the communities breaking news leader in Connecticut’s Fairfield County. He strongly believes that the public has right to know what is happening in their backyard and that government needs to be transparent. Steve also likes promoting local businesses.

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