Few settlements reached in price gouging cases in wake of Hurricane Beryl

Nick Natario Image
Saturday, November 16, 2024
Few settlements reached in price gouging cases in wake of Hurricane Beryl
After receiving two settlements from gas stations accused of price gouging during Hurricane Beryl, the Harris County attorney hopes his office sent a message to store owners.

HOUSTON, Texas (KTRK) -- After receiving two settlements from gas stations accused of price gouging during Hurricane Beryl, the Harris County attorney hopes his office sent a message to store owners.

After Hurricane Beryl left millions in the dark, hundreds of complaints were made about store owners taking advantage. This summer, ABC13 heard from those who filed complaints.

"It honestly makes me a little bit sick to my stomach," Phillip Knop told ABC13.

"If it's not controlled, it's going to keep happening," Cheryl Dickens explained to ABC13.

Harris County Attorney Christian Menefee says it's a priority of his to crack down on price gouging during natural disasters. After receiving complaints during Beryl, his office took two gas stations to court.

The latest was a Shell at West Loop and Fournace Place, which was hit with a $50,000 settlement.

"This penalty far outweighs the profits they earned during that time," Menefee said. "We're very proud of the result."

More than 250 complaints were filed with the county attorney from Hurricane Beryl. The office collected $100,000 in settlement money from two cases.

That's less than one percent of the complaints that came in. Menefee said the others were still successful because when they showed up, the businesses lowered prices.

As for the settlement money, Menefee said it goes into the county general fund and is not available for victims.

"They could potentially pursue their own legal option, but Texas law only allows us to go after the penalties," Menefee said. "We're not able to represent folks."

That's different from what happens with the Texas attorney general. After Hurricane Harvey, the office received more than $300,000 in settlements from 61 gas stations from across the state.

Victims filed claims to get the settlement money. As for Beryl, an ABC13 records request showed more than 110 gouging complaints were made to the attorney general.

The office didn't respond to ABC13 when we asked about potential cases. Menefee hopes his office's legal wins will help cut down the number of complaints they receive.

"The penalties are designed to make an example of companies who know that this is not how you do your neighbors during a disaster," Menefee said.

In the past, when the attorney general won settlements against businesses, victims couldn't wait forever to get money. They had to file a claim within a certain period after the settlement.

If you filed a complaint, and are wondering what's going on, the attorney general has a website with contact information to reach the office.

For updates on this story, follow Nick Natario on Facebook, X and Instagram.

Copyright © 2024 KTRK-TV. All Rights Reserved.