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AG sues Sunmart gas stations for price gouging

05:46 PM CDT on Thursday, July 31, 2008

By ELISE HU
KVUE News

Sunmart gas stations' parent company, Petroleum Wholesale, is facing a massive civil suit from the Texas Attorney General.

Video
KVUE's Elise Hu reports
07/31/2008

Texas Department of Agriculture inspectors found that the Woodlands-based company was rigging as many as 990 gas pumps statewide, so that they didn't put out as much gas as customers paid for.

The attorney general's lawsuit accuses Sunmart of violating the Texas Deceptive Trade Practices Act. It says the company deliberately calibrated the pumps to benefit the company. The state's suing for $20,000 for every time a customer was overcharged at a pump.

"It's a potential financial death penalty," said Attorney General Greg Abbott.

Sunmart did not respond to the charges Thursday afternoon, but the AG expects the company will settle.

"They would be very smart to come forward very quickly and try to resolve it as quickly as possible," Abbott said.

This is the second action filed against Petroleum Wholesale in less than two months. the company was charged with violating the Identity Theft Enforcement and Protection Act after investigators say it dumped hundreds of customer records containing sensitive information. The case is pending.

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