State sues Whitlock, claims gas gouging
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The defendant, Jess Whitlock, who runs Whitlock’s Grocery on Short Mountain Road, could face up to $1,000 per violation and is presently under a restraining order preventing the sale of gas at increased prices. However, the longtime retailer says the entire incident is a misunderstanding and he never charged $7 a gallon.
The civil suit, taken against the country store owner by State Attorney General Paul Summers, maintains the small business sought to profit from the disaster.
“They substantially inflated prices as a direct result of the natural disaster,” maintained Timothy C. Phillips, senior counsel for the state attorney general.
The suit comes following a complaint against Whitlock filed by Susan A. Smith, who said she was gouged at the pump when she went to the store to buy gas for her lawnmower.
In her affidavit, Smith said gas was advertised for $3.50 a gallon at 10 a.m. on Sept. 3, five days after landfall of Katrina, but there was a handwritten note on the pump saying prices had been doubled. She said she pumped just over a gallon of gas and was charged $9. She admits she did not get a receipt.
Whitlock was stunned by the allegation, saying he has no idea why Smith, a neighbor, would file such a complaint. Whitlock said there was a note indicating double prices. However, he says the price being doubled was $1.75 per gallon. Whitlock noted he has old pumps which could not reach the $3.50 a gallon mark, thereby necessitating the note.
“It was so obvious that I thought even a 6-year-old could understand it,” Whitlock said.
“I don’t know why somebody would go off and say something like that about me,” Whitlock continued. “All a person had to do was ask if they didn’t understand.”
According to Daniel W. Macormac, consumer protection analyst for the state, any gas price over $3.50 in the wake of Katrina is considered unreasonable. Prior to the disaster, the average retail price per gallon was $2.52. While the hurricane caused an increase, those charging over $3.50 per gallon in Tennessee are gouging at the pumps, Macormac believes. The state received thousands of gas gouging complaints through its hotline during the rise in prices. Scores of such reports remain under investigation.
In addition to being fined up to $1,000 per violation, Whitlock, if the charge is supported, could be ordered to pay the costs for the investigation and the court proceedings, which could run into many thousands of dollars.
The case will be heard at 9 a.m. Tuesday by Circuit Court Judge Bart Stanley.