Thursday, November 27, 2008

My Dream: Governor Issues Predatory Pricing Order To Protect Gas Station Owners From Low Gas Prices

A post titled "Price Gouging: The Latest Victim" from Peter Klein has been circulating on the blogs, I found it on Coyote Blog, and it inspired the following post, based on the Georgia Governor's Executive Order Activating Georgia's Price Gouging Statute:

ATLANTA – In response to falling gas prices, Governor Sonny Perdue signed an Executive Order this week enacting Georgia's predatory pricing statute to protect Georgia gas stations and oil companies from unlawful, unconscionable decreases in gas prices due to falling consumer demand, increases in the supply of gasoline, or predatory market competition.

Georgia's predatory pricing statute prevents ruthless price-conscious consumers from taking advantage of gas station owners and oil companies during an economic slowdown by only agreeing to buy goods or services if they are offered at unreasonable or egregiously low prices, i.e. prices that are considered to be “predatory.”

“The financial crisis and economic recession have seriously decreased the demand for gasoline, which has had a significant downward effect on prices,” said Governor Sonny Perdue. “However, we expect that the prices Georgia’s consumers are willing to pay at the pump be reasonable, and not excessively low. We will not tolerate greedy consumers preying on, and taking advantage of, Georgian gas stations and oil companies during an economic slowdown.”

“Mrs. Perdue and I hope and pray the economic hardship on gas station owners and oil companies from extremely low gas prices to be minimal,” Governor Perdue added. “Georgians stand ready to assist our fellow American gas station owners and oil companies in any way possible as they recover from the impacts of this dangerous decrease in consumer demand for gasoline, which has contributed to the unprecedented fall in gas prices of more than 50% in just four months.”

Citizens are asked to report any suspected incidences of predatory pricing to the Governor's Office of Consumer Affairs at (404) 651-8600 or (800) 869-1123.


At 11/27/2008 2:10 PM, Anonymous Fred said...

We've had that in Wisconsin for years. It's called the minimum markup law.

At 11/28/2008 1:35 AM, Blogger qi said...

just like a wage floor ,this crazy idea can only come out from a guy know nothing about economics

At 11/28/2008 3:16 AM, Anonymous poor boomer said...

You cannot overcome Yoginomics with legislation.

According to a well-known quote from Yogi Berra, "if the people don't want to come out to the park, nobody's gonna stop them."

Besides, if demand and gas prices are down, the station owners should be enjoying lower costs. If there is an appropriate target for such legislation, shouldn't it be the oil companies rather than the station owners?


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