Saturday, September 15, 2001

Price-gougers' conduct was contemptible

AUSTIN - Tragedies usually bring out the best in Americans. That has been the case in New York and Washington, D.C., where knife-wielding hijackers crashed two airliners into the World Trade Center, toppling its twin 110-story towers, and slammed another plane into the Pentagon.
   Americans throughout the nation - including in Texas - have offered to help in anyway they can. But tragedies can also bring out the worst in people and companies, as it did in Texas and some other states.
   As Americans grieved over the worst terrorist attack ever, political leaders from Texas and other states had to deal with another problem: price gouging. Consumers have been complaining that some businesses - mostly gas stations-had jacked up their prices in the wake of the terrorist attacks. The complaints prompted Gov. Rick Perry to issue a limited disaster declaration in Texas to curtail possible price gouging by some gasoline retailers, car rental agencies, and hotels and motels.
   The declaration extends the protections of the Texas Deceptive Trade Practices Act specifically to bar price gouging. ''The state of Texas will not tolerate any actions that attempt to take advantage of the tragic events of today,'' Perry said. ''With this emergency declaration, the Attorney General has every available tool to pursue such unscrupulous business activities that may occur in Texas.''
   The fact that Perry had to issue a disaster declaration to stop possible price gouging is disgusting. Businesses that price gouge consumers during tragedies are no better than people who loot stores at times of natural disasters or riots.
   Perry issued the declaration after consumer complaints of sudden and excessive price increases for items such as gasoline, rental cars, and hotel and motel rooms - especially around the state's major airports.
   Texans who feel they are victims of price gouging should contact the Office of the Attorney General's Consumer Protection Division at 1-800-337-3928 or 1-800-252-8011. Consumers can also register complaints on the Internet at www.oag.state.tx.us.
   Fortunately, Texans are reporting these businesses. One day after the terrorist attack, the Attorney's General's Office received more than 200 phone calls from Texans who complained of extraordinarily high gas prices. That number blossomed to 1,000 by the end of the week.
   In most cases, the confirmed price gouging incidents are resolved with a phone call, according to the Attorney General's Office. However, the Texas Deceptive Trade Practices Act gives the attorney general authority to take legal action when necessary. Price gouging violators could face fines of up to $10,000 per incident, and be forced to pay attorneys fees and restitution.
   ''There is an artificial fear out there that our nation's fuel supply is in danger,'' said Attorney General John Cornyn. "I find it despicable that some business operators want to profit from that fear. ''Texas consumers are on notice, and they are giving us helpful leads on unscrupulous business operators.''
   Cornyn should crack down
   Despicable is right. Cornyn should take aggressive action against those businesses that gouge consumers. And he should publicize the names of businesses found guilty of price gouging, which would allow consumers to avoid those companies now and in the future.
   The question is why would gas prices increase as a result of the terrorist attacks? The American Petroleum Institute in Washington issued a statement saying there is no threat of a fuel shortage. ''Fuels are flowing normally to wholesale and retail markets throughout the United States," the institute said, adding that gasoline and diesel fuel inventories ''are adequate to meet demand and refinery production remains strong.''
   There is no reason for gas price hikes except that businesses are preying on consumers at a time of tragedy. Consumers need to continue reporting these businesses to the proper authorities and those authorities need to act quickly to punish companies that take advantage of Americans during this time.
  
   Ty Meighan is chief of the Scripps Howard Austin Bureau and can be reached at 512-334-6640 or meighant@scripps.com
  
  

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Ty Meighan is chief of the Scripps Howard Austin Bureau. You can reach him by phone at (512) 334-6640 or by email at meighant@scripps.com.

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