For the second time in four years, Michigan Attorney General Bill Schuette has sued propane distributor AmeriGas, one of the largest retail suppliers of residential propane in Michigan, for violating the Michigan Consumer Protection Act. Following an extensive investigation, the lawsuit alleges numerous problems with the company’s operations impacting consumers throughout the State of Michigan. The suit seeks civil penalties as well as reimbursement for Michigan consumers.
“I take enforcement of the Michigan Consumer Protection Act seriously, especially when a company may have repeatedly violated the act,” said Schuette. “Michigan consumers deserve companies that follow the law, and I will hold them accountable.”
Some of the allegations mentioned in the lawsuit are:
• AmeriGas allegedly charged some of its customers grossly excessive per-gallon prices on propane during the winter of 2015-16.
The charges, sometimes more than $3.00 per gallon, were allegedly used to offset discounts given to entice new customers. Weekly propane price averages showed the average per-gallon propane prices that winter ranging from $1.63 to $1.71.
• AmeriGas no longer refunds customers who return propane after terminating service. Instead, AmeriGas resells the returned propane to other customers and keeps the money for itself.
• AmeriGas charges a HazMat and Fuel Recovery fee on propane deliveries in Michigan. These are not government-mandated fees. The lawsuit alleges AmeriGas misleads consumers into believing that these fees are needed to cover overhead expenses, which are already paid for through per-gallon pricing.
• In addition, AmeriGas allowed 20-30 consumers served by its subsidiary, Schultz Bottle Gas, to run out of propane in the winter of 2015-16, even though the company was responsible for filling the tanks as part of an auto-fill program.
Schuette sued AmeriGas once before and reached a settlement in October 2014 for propane-pricing issues during the 2013-2014 winter season. That previous settlement resulted in over $550,000 in consumer relief to affected Michigan consumers. These newly alleged violations include one asserting AmeriGas is in violation of the 2014 settlement agreement.
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