Baytown crime: Gas station fined $50,000 for price gouging during Hurricane Beryl
BAYTOWN, Texas - A Houston-area gas station has been fined $50,000 for price gouging during Hurricane Beryl. Harris County Attorney Christian D. Menefee announced the penalty against Super Stop, located on North Main Street in Baytown, after it increased fuel prices by more than 40% during the storm.
"That ain’t cool because a lot of people are in trouble and need help and stuff," said Brian, a customer at the gas station.
He, like so many in our area, struggled during Beryl. No electricity and necessities like gas – hard to come by.
"It really did hurt a lot," he said.
Menefee says during the hurricane, they got hundreds of complaints about price gouging.
"During Hurricane Beryl, we received 250 complaints," he said.
Menefee says they sent cease and desist letters to the businesses they verified were price gouging.
"There was virtually 100% compliance - except for a couple companies, including this gas station, and that's why we filed a lawsuit against them," he said.
He says they’re not sure how much more Super Stop made from the gouging, but they believe the fine far exceeds any extra profit.
According to the U.S. Chamber of Commerce, price surging and dynamic pricing are a part of everyday economics. Businesses often price goods and services according to demand. So, we see cheaper drinks during happy hour when demand is low and higher Uber rates on rides at peak times when demand is high.
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Price gouging, on the other hand, is a term used specifically in situations when the business takes advantage of the consumer’s position.
Increasing costs is only considered gouging in Texas when both apply:
- The goods/services are considered necessities.
- The Governor of Texas or President has declared a disaster.
The Texas Practices Consumer Protection Act says it’s considered taking advantage of the disaster is the business is:
- Selling or leasing fuel, food, medicine, lodging, building materials, construction tools, or another necessity at an exorbitant or excessive price;
- Demanding an exorbitant or excessive price in connection with the sale or lease of fuel, food, medicine, lodging, building materials, construction tools, or another necessity.
"If you're trying to follow a supply and demand curve to make a profit, when people are without water in their homes, and you’re trying to make a profit off water - it's illegal," said Menefee.
Menefee says the reports they got included several different gas stations, hotels and other businesses.
He says another lawsuit for a different gas station is currently in the works.
He encourages any consumer to report price gouging during a disaster to report it, so his office can take action.