You asked what triggers the attorney general's ability to investigate price gouging by gasoline stations.

SUMMARY

The law does not prohibit “price gouging,” but it does prohibit all retailers from profiteering during declared emergencies, whether the governor declares it under the civil preparedness law or the transportation law or the president declares it. Further, the law authorizes the governor to declare supply emergencies if there is a shortage, or a threatened shortage, of a product due to an abnormal market disruption. In either eventuality, the attorney general can pursue legal remedies only after an investigation by and referral from the Department of Consumer Protection.

PROFITEERING

The law prohibits profiteering during declared emergencies. Specifically, retailers may not raise the price of any item offered for sale in an area that is the subject of (1) a disaster emergency declaration issued by governor under the civil preparedness law, (2) a transportation emergency declared by the governor, or (3) any major disaster or emergency declared by the President of the United States (CGS § 42-230). A violation is an unfair trade practice. The attorney general can investigate after investigation by and referral from the Department of Consumer Protection (DCP), as described below.

SUPPLY EMERGENCIES

The law also authorizes the governor to declare a supply emergency if there is a statewide or regional shortage or threatened shortage of a product due to an abnormal market disruption resulting from a natural disaster, weather conditions, acts of nature, strike, civil disorder, war, national or local emergency, or other extraordinary adverse circumstance (CGS § 42-231).

During a supply emergency, the law prohibits any retailer from selling a product that the governor has designated as being in short supply, or in danger of becoming in short supply, at a price that is more than the price it was sold for immediately before the declaration (CGS § 42-232). Further, the law specifically prohibits selling an energy resource (defined to include gasoline) during a declared energy emergency at a price that is more than the price it was sold for immediately before the declaration. A violator commits an unfair trade practice and is subject to a fine of up to $ 1,000, one year imprisonment, or both, for each offense. An intentional violator or someone who has engaged in a pattern of behavior constituting repeated violations is subject to a fine of up to $ 5,000, five years imprisonment, or both. Each violation and each day on which the violation occurs constitutes a separate offense.

CONNECTICUT UNFAIR TRADE PRACTICES ACT (CUTPA)

The law prohibits businesses from engaging in unfair and deceptive acts or practices. It also identifies certain acts or practices, such as profiteering or violating the price caps during a declared supply emergency, as unfair or deceptive trade practices and subject to CUTPA. The act allows the DCP commissioner to issue regulations defining what constitutes an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $ 5,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance. The act also allows individuals to sue. The act authorizes the attorney general, after a referral from DCP seeking injunctive relief, to seek permanent or temporary restraining orders, restitution orders, or the appointment of a receiver (CGS § 42-110m). Courts may issue restraining orders; award actual and punitive damages, costs, and reasonable attorneys fees; and impose civil penalties of up to $ 5,000 for willful violations and $ 25,000 for violation of a restraining order.

DD: ro