Letter to Commissioner Deborah Platt Majoras
Letter to Commissioner Deborah Platt Majoras
September 5, 2005
Commissioner Deborah Platt Majoras
Federal Trade Commission
600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580
Dear Commissioner Majoras:
We are writing to express our concern over the skyrocketing gas prices and the direct effect on the daily lives of working Americans. Even before the devastation of Hurricane Katrina, surging gas prices were already a salient issue for the American consumer. Now, with an energy crisis looming, the topic has become even more critical, and Americans are reaching ever deeper into their pockets for this necessary commodity.
Some of the increase in gas prices can be attributed to the interruption in oil and refined gas supplies, and the uncertainties of such an unprecedented and unpredictable event as Hurricane Katrina. But we fear that some of the fluctuation and inconsistencies in gas prices are a result of price gouging at the pump. Price gouging must not be tolerated and we must do more to make sure that oil companies and gas station owners are operating ethically and within the law, especially in the wake of this disaster.
Across the Northeast, gas prices have surged from pre-Katrina levels. Market forces have certainly played a role in these prices, but the variety of prices at gas stations and the fact that profits continue to flow to big oil indicate improper pricing. While we understand that the Federal Trade Commission already monitors gas prices and investigates possible antitrust violations in the petroleum industry, we request the immediate formation of a task force to promptly identify the many cases of price gouging being reported across the country, and ask that the task force formulate a process by which price gougers are swiftly prosecuted.
As you are aware, there are currently no federal laws that specifically address price gouging. The state laws that do exist regarding price gouging are usually only triggered in situations arising from a declared emergency. We respectfully request the Commission's recommendations on the most effective way to strengthen the federal government's authority in this area.
The unprecedented devastation caused by Hurricane Katrina will have long-term economic impacts, the scope of which we are only beginning to understand. Yet, we know that during this time of economic fragility, we must make every effort to stop those who are willing to take advantage of this natural disaster for their own gain.
We thank you for your consideration in this matter.
Sincerely,
Jon S. Corzine
Charles E. Schumer
http://corzine.senate.gov/press_office/record.cfm?id=245240