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| Wilson Plan Punishes Gougers |
October 08, 2005 |
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Congresswoman`s provision mandates hefty fine for gas sellers who raise prices too much
By JEFF JONES Journal Staff Writer
 So-called "price gougers" reap big fuel profits in the wake of a disaster would face big punishments under a provision that Rep. Heather Wilson, R-N.M., fought to include in an energy bill that passed the House on Friday.
"It`s people trying to take advantage of ... a tragedy, and it`s not right," Wilson said during a telephone interview following Friday`s passage of the measure. "This is a significant change."
The bill goes to the Senate for its consideration.
Wilson introduced her amendment last week, but it was weakened by a substitution, according to a news release from her office. She said the tougher wording was restored Thursday night following negotiations with the bill`s sponsor, Rep. Joe Barton, R-Texas.
Wilson said the provision "goes up and down the chain. It`s not just retailers - it`s suppliers, refineries, any person or corporation that price gouges."
-Albuquerque Journal, October 8, 2005
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Under Wilson`s provision, gasoline stations could be slapped with an $11,000 penalty for each violation, according to the news release. And the president could choose to extend the area where the rules apply beyond the boundaries of a declared disaster.
Wilson said the provision "goes up and down the chain. It`s not just retailers - it`s suppliers, refineries, any person or corporation that price gouges."
The bill would also apply to those who sell crude oil and home-heating oil, Wilson said.
The Federal Trade Commission would be charged with establishing a definition of price gouging, according to the news release.
Wilson said she hopes the definition would be in line with what has already been established by some state laws: an increase that exceeds 10 percent of the average, pre-disaster price is considered gouging unless a fuel vendor can show the increase was directly related to his or her costs of obtaining the fuel.
Price-gouging legislation is also being considered in a special session of the New Mexico Legislature, which convened Thursday in Santa Fe.
Click here to read more about Congresswoman Wilson`s plan to fight gasoline price gouging. |
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