Report: Tennessee Officials Investigating More than 600 Price-Gouging Complaints

NASHVILLE, TN — Tennessee consumer-protection officials received nearly 600 price-gouging complaints over the weekend as the Alabama pipeline leak caused a surge in demand from panicky motorists worried about a tighter supply.

While the average price of gas up about 50 cents from the close of business Thursday, the actual price of fuel varies widely and that's not unexpected given the situation. Gov. Bill Haslam declared a state of emergency Friday to allow drivers of tanker trucks to drive longer hours. But, that declaration has another effect: it triggers a 2002 state price-gouging law.

Under that law, it is illegal to charge a a price "that is grossly in excess of the price generally charged for the same or similar goods or services in the usual course of business immediately prior to the events giving rise to the state of emergency." The law is vague on what "grossly in excess means" — that's up to lawyers, accountants and investigators to determine — and it also sets a fairly low bar for the defense. Only "prima facie" evidence that the business was charging a fair price is necessary to avoid prosecution.

According to a report from WPLN, most of the complaints are about prices close to $3 per gallon, though one alleges a station was charging $9.99 per gallon.

Penalties for violating the law range from voluntary promises to go forth and sin no more to temporary restraining orders to fines of up to $1,000 per violation.

The Consumer Protection Bureau will contact anyone who makes a complaint, though they told the radio station that might take awhile, given the sheer number of complaints they received in one weekend.

Image via Shutterstock