Attorney General Gansler Settles with United Propane
Company agrees to honor price guarantees
MD (October 16, 2008)- Attorney General Douglas F. Gansler announced today
that his Consumer Protection Division has
reached a settlement with Inergy Propane, LLC, doing business as
United Propane (“United Propane”). United Propane is
headquartered at 205 Najoles Road, Millersville, MD 21108.
United Propane entered
into multi-year agreements to supply propane gas to residential
consumers at the Symphony Woods development
in Centerville, Maryland. Several consumers residing at Symphony
Woods signed addenda to their service agreements that fixed the
price per gallon for the propane gas over the terms of the agreements.
The Attorney General’s Office alleged that after the original
owners of United Propane sold the company to Inergy Propane, LLC,
a Kansas City-based propane gas supplier, United Propane began
raising its prices in violation of the addenda.
“Businesses cannot change the bargained for terms of their
contracts with consumers, particularly terms related to the price
of any goods or services,” said Attorney General Gansler. “I
am pleased that consumers will be receiving refunds and that United
Propane will be honoring its contracts.”
Although United Propane denied that it violated any laws, under
the settlement agreement it has agreed to honor any price guaranteed
by any customer contract and it will pay restitution to the consumers
in the amount equal to the amount it charged consumers above the
guaranteed price. United Propane also agreed not to alter any terms
of its existing contracts with customers. The company also agreed
to pay the Office $5,000 for its costs and $5,000 as a civil penalty.
Consumers eligible for restitution under the settlement will be contacted by
the Consumer Protection Division.