Alberto Gonzales Files - House.gov-090705gaspricesgonzales

8/14/2019 Alberto Gonzales Files - House.gov-090705gaspricesgonzales

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September 8, 2005

Attorney General Alberto GonzalesAttorney General of the United StatesU.S. Department of JusticeWashington, DC 20530Chairwoman Deborah MajorasChairwomanFederal Trade CommissionWashington, DC 20580Dear Attorney General Gonzales and Chairwoman Majoras:We are extremely concerned about gasoline price spikes around the country, and havebeen for quite some time prior to the devastating hurricane in the Gulf Coast. Whilemany of us have been calling for investigations prior to this natural disaster, HurricaneKatrina has given new urgency to our concerns about price gouging and price fixing bythe oil industry. Although supply disruptions and refinery shutdowns from the hurricanehave certainly added to the gasoline price mayhem, we believe it is only part of thepicture, and as such we are requesting an immediate investigation into other possiblewrong-doing by industries that are making record profits at the expense of averageAmerican families.As you know, prices at the pump have jumped precipitously overnight and news of $6per-gallon gasoline in some parts of the country has led us to seek remedies that willprotect American families who cannot afford to meet their basic transportation needs.This upward spiral in gas prices also hurts the businesses of small gas retailers who are atthe mercy of their corporate suppliers.We understand that there is no federal law specifically governing price gouging, and thatprice-gouging laws that do exist in states are usually triggered only when emergencysituations develop. However, since the Federal Trade Commission Act outlaws unfair ordeceptive practices in interstate commerce, including industry collusion and price fixing,this situation warrants an investigation to ensure that unfair practices are not occurring allalong the production and supply chain, leading to unaffordable fuel costs for manyfamilies on fixed incomes and potential shortages at the pump.

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Attorney General Gonzales and Chairwoman MajorasPage 2September 8, 2005

Just as the aftermath of terrorist attacks in September 2001 led to increased prices ofgasoline between 30-40 cents per gallon on the basis of speculation, not necessarilybecause of shortages or increases in operating costs, we believe that the situation faced bythe country today deserves a thorough federal investigation to complement potentialstatewide investigations into unfairpractices, including collusion, price fixing or price-gougmg.Asyou recall, the post - September 11th investigations led to large fines to violators whowere profiteering on the backs of American families. The opportunity again exists to reinin bad actors, and as such, we believe it is imperative that federal officials initiate asimilar investigation immediately with an eye toward vigorously prosecuting any and alloffenders.Thank you for your immediate attention to this situation. We await your prompt responseto our urgent request.

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Attorney General GonzalesChairwoman MajorasPage 3September 7, 2005

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Attorney General GonzalesChairwoman MajorasPage 4September7,2005

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9/11

Signatories on FTC/AG letter re2ardin2 2as price investi2ation:HincheyOberstarDeLauraGutierrezPalloneFordEmanuelEngelPayneMoran, JimTownsKapturLipinskiOlverCappsSchwartz, AStarkCostelloMoore, GKennedy, PMcCarthyRothmanBorenScott, DStupakHastings, ADoyleEtheridgeDeFazioMichaudEvansMeehanLee,BMcCollumMaloneyMcDermottKanjorskiRyan, TAndrewsHigginsBerkleyMcNultyLowey


10/11

Signatories FTC/ AG letter regardinl! I!as price investil!ation (pal!e 2)CrowleyHersethBishopHoltDavis, SAckennanSerranoLangevinCaseMcGovernFrankCleaverKildeeClay, WmRoybal-AllardCostaGreen, ALevinBerryFarrWatson,DianeMarkeyHooleyLarson, JNadlerHolden, TStricklandSolisVan HollenGrijalvaBarrowMillender-McDonaldNealFordKilpatrickBacaCarson, JScott, RMatsuiSprattHarmanBairdLewis, JohnMiller, Brad


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Si!!:llatories FTC/AG letter re2ardin2 2as price investi2ation ({la2e 3)ViscloskyLantosCardinBordalloDavis, ArturSalazarShermanBerman

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Alberto Gonzales Files - House.gov-090705gaspricesgonzales