Friday, December 22, 2006

A Little Gouging for the Holidays, Part Deux

NOTE: We are re-running this post, originally published December 5, because we have had a response from Turkey Hill, and some newly discovered information.

First, the original post:
A friend's missive arrives today, recounting the tornado that hit his sleepy little burg outside Wilkes-Barre last Friday. I've passed through the town of Mountaintop a few times, not much to see there folks.

But I guess there was plenty to see Saturday morning, after this thing ripped through town, putting the mountain in the dark for three days.

All, that is, save for the Turkey Hill store and gas station. It must have been equipped with back-up power because it stayed open through out the weekend. It was the only place to get gas -- the other stations were shuttered for lack of power.

The Turkey Hill manager decided to take advantage of the situation -- by raising the prices at the pump. Before the power was knocked out, according to my correspondent, Turkey Hill sold regular for $2.35 -- which was the going rate in the town. After the power outage knocked out the competition, the store raised the price to $2.37. When the power was restored a few days later, they knocked it back to $2.35. I guess the residents there should be grateful that the Turkey Hill didn't get really greedy and raise it double-figures.

On the other hand, a locally-owned supermarket there, Carrone's, whose competition was knocked out by a direct hit on their building, went the other way. They brought in a tractor-trailer load of water and was handing it out -- free of charge -- all through the weekend and beyond. (My pal tells me quite a few people in the area are serviced by private wells.)

Big difference in attitude between the locally-owned retailer and the chain store. Keep that in mind when shopping this Holiday season.
Now, the Turkey Hill response:
I can assure you that we did not make any gasoline price changes during the power outage. I verified this with our databases. I spoke with the District Advisor as well and he was not aware of any issues with the price sign, but it could be possible that while the generator was running there may have been some sort of false signal to the electronic price sign.

I thank you for giving me the opportunity to set the record straight. I would be happy to discuss the issue with the individual who reported the pricing to you as well.
This from Gabriel Olives, Director MIS/Petroleum, Turkey Hill Minit Markets.

Well, Gabe -- can I call you "Gabe"? -- this is not, as another more famous blogger likes to say, my first trip to the rodeo.

A "false signal" to the price sign, despite no one being aware of any problems with the price sign. Clever. But I am not buying it, so to speak.

Since I ran the post, I have heard from other Mountaintop residents who confirmed the original report of my friend. BTW, all of them -- and to my knowledge they don't know one another -- said that they are no longer patronizing the Turkey Hill as a result.

As for myself, I usually opt for the name brand over the gas de jour offered by chains like Turkey Hill -- I resent that branded gas chains, like Turkey Hill, pay 3-6 cents less per gallon than the name-brand independent station owners (due to the higher costs of the fuel-improving additives in the name-brand gas). Yet, the Turkey Hills of the world typically charge the same as the guy across the street shilling BP, or whatever. But, I am going elsewhere for my coffee and newspapers when on the road. I figure that alone has got to cost Turkey Hill at least $12 a year.

So, take that!

But, Gabe, sometimes it is better not to protest too much. I did a little digging (very little, as the nuggets were just lying just below the surface) and discovered that neither Turkey Hill nor this very Mountaintop, PA outlet are strangers to gouging charges.

Back in April it was reported that several Turkey Hill stores, INCLUDING the Mountaintop outlet, agreed to pay several thousand in civil fines for gouging at the pump:
Without a gouging law in place in Pennsylvania, of the more than 1,000 gas gouging complaints the state received last year, only two companies were fined under the consumer protection law in place.

Lancaster-based Turkey Hill agreed to pay $6,000 in fines for prices charged at stores in Shillington, Berks County, and Mountain Top, Luzerne County. . . . The Valley General Store in Huntingdon County also agreed to pay a $1,000 fine. Under the agreement, both companies did not have to admit they gouged customers.
Now, isn't that special?

Turkey Hill, one of only two companies in the entire damned Commonwealth fined for gas gouging, including at this Mountaintop store that (oh, okay) "reportedly" raised its prices during an emergency. In another report, Pennsylvania Deputy Attorney General Barry Creany was quoted, talking about Turkey Hill, saying "It is taking unfair advantage of being greedy in a situation where there is a dire need."

Indeed.

But now, you tell us, you are "Shocked. Shocked!", you say, "To find gouging in Mountaintop's Turkey Hill!". Well, here's my suggestion to those who contacted me about the "apparent" Mountaintop emergency gouging:

Office of Attorney General
Bureau of Consumer Protection
101 Penn Avenue
Scranton, PA 18503
(570) 963-4913

Pa Attorney General, Consumer Protection Hotline: 800-441-2555

PA Attorney General Online Complaint Form.

3 comments:

PA progressive said...

What do you expect? Turkey Hill is headquartered in Lancaster County, the most Republican area in Pennsylvania. You might remember the Republican Party of old whose motto was "greed is good."

Anonymous said...

Maybe if local police departments would enforce the laws against gas drive offs, higher priced fuel would not be needed. I don't think that Turkey Hill is the only one to blame and a 2 cent jump in gas price?? Come on!

A Big Fat Slob said...

So help me out here.

For future reference, when taking advantage of a natural disaster, just how much gouging is objectionable?