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NJ settles first Sandy price-gouging suits for $46,000

YOU READ IT HERE FIRST: State officials have secured the first two price-gouging settlements in the wake of Hurricane Sandy — one with a Clifton gas station — and said this morning that they expect more to follow.

Photo Credit: Cliffview Pilot File Photo

George’s Gulf in Clifton and a Lukoil station in Piscataway collectively will pay $46,000 to settle charges of excessively and unjustifiably raising gas prices during the state of emergency declared by Gov. Christie during the storm.

They were among 24 businesses sued by Attorney General Jeffrey S. Chiesa and the State Division of Consumer Affairs on price-gouging charges.

C.S. George & Sons, Inc., which does business as George’s, jacked the price of regular gas from $3.49 to $4.69 per gallon, an increase of nearly 35%, generating 52 consumer complaints, Chiesa said.

Shiv Shivam, who owns the Lukoil in Middlesex County, hiked its prices for regular by 17.5%, he said.

“[W]e acted swiftly and decisively to investigate consumer complaints about alleged price-gouging and to file lawsuits, where warranted, in order to protect New Jersey residents from such unlawful practices,” Chiesa said.

New Jersey’s price-gouging law prohibits price increases of more than 10% during and for 30 days after a declared state of emergency.

The DCA received more than 50 consumer complaints about George’s Gulf Station, on Crooks Avenue.

The owners agreed to pay $26,000, including penalties and state attorneys’ fees.

Their Piscataway counterparts to $20,000.

Both also agreed to comply with the consumer fraud act going forward — including by “not advertising, offering for sale and/or selling motor fuel at excessive prices following a declared State of Emergency,” among other measures, Chiesa said.

Any future violations mean higher penatlties, he added.

Deputy Attorney General Glenn T. Graham in the Division of Law represented the state in the C.S. George & Sons case and Investigator Cullen Church in the Office of Consumer Protection conducted the investigation.

“We’re continuing our work to protect state residents in the aftermath of Superstorm Sandy,” DCA Director Eric T. Kanefsky said. “Our investigators are out in storm-damaged areas, seeking out unregistered contractors who are working illegally and who may be planning to defraud homeowners whose dwellings need repairs, and we are actively working to ensure that Sandy-related charities are operating in accordance with our laws and regulations.”

Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file a complaint with the New Jersey Division of Consumer Affairs by visiting its website (http://www.njconsumeraffairs.gov/) or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

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