Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES NEWS: AmeriGas, Michigan AG reach $550K settlement over pricing complaints, (Oct 23, 2014)

By Greg Hammond, J.D.

AmeriGas Partners, L.P. has agreed to a settlement of over $550,000 with the Michigan Attorney General’s Corporate Oversight Committee, resolving hundreds of complaints regarding the company’s propane-pricing practices during the 2013-2014 winter season (Schuette v. AmeriGas Partners, L.P., Case No. 14-0248-CP).

In a complaint, brought under the Michigan Consumer Protection Act, the Michigan Attorney General’s office claimed that: (1) hundreds of AmeriGas customers were charged higher prices than the per-gallon rates they had previously locked-in for the 2013-2014 winter season, many of whom did not receive proper bill adjustments; (2) some customers were charged higher per-gallon prices than what was quoted to them by AmeriGas when they placed their orders; and (3) AmeriGas charged over 5,000 customers prices that were grossly in excess of those being charged by other retailers in Michigan.

The settlement will effectively place money back into the hands of consumers affected by the alleged practices. First, AmeriGas will adjust the bills of the roughly 140 consumers who were charged higher prices than what they locked-in; the consumers will additionally receive 50 percent of the difference as compensation. Second, the hundreds of consumers that paid higher per gallon prices than quoted will receive reimbursements for the overcharges, as well as 50 percent of the difference in prices. Lastly, the over 5,000 consumers that paid excess prices will have their per-gallon price points rolled back, and will receive an additional 50 percent. Consumers will be collectively receiving $568,572 from these three reimbursement categories.

“Cooler autumn weather means many Michigan families are already anxious about upcoming heating bills,” stated Schuette. “I’m happy we can put money back into the wallets of hard-working families who paid steep prices to heat their homes last winter while already trying to make ends meet.”

The settlement will allow consumers currently billed at market rates to sign up for a locked rate for the approaching winter season, without having to pay the typical $99 enrollment fee. According to the Attorney General’s office, for every thousand customers that participate in the program, the estimated value to consumers is more than $100,000.

Attorneys: Joseph E. Potchen and Darrin Fowler, Assistant Attorney Generals of the State of Michigan. Steve Samuel, for AmeriGas Propane, L.P.

Companies: AmeriGas Partners, L.P.; AmeriGas Propane, L.P.

News: ConsumerProtection StateUnfairTradePractices MichiganNews