Alabama AG announces $500,000 settlement over propane billing fees

Alabama Attorney General Luther Strange announced a $500,000 consumer protection settlement on July 18, 2014, with ThompsonGas-Smokies LLC and Suburban Gas Propane Partners LLC over alleged violations of the Alabama Deceptive Trade Practices Act.

The agreement, filed in Jefferson County Circuit Court, is intended to resolve claims tied to minimum usage or non-usage fees billed to about 2,000 customers. The Attorney General’s Office said the settlement will provide refunds to Alabama consumers and add steps intended to prevent similar billing disputes.

The office said the companies’ regional headquarters were in Columbiana and that they operated numerous branches across Alabama. According to the complaint described in the release, the companies billed the customers in May 2012 fees ranging from $192.80 to $706.80.

The release said many of the affected customers came from the companies’ acquisition of other propane businesses. It also said some of those customers had contracts that did not necessarily allow the fees.

The settlement calls for the companies to send letters to affected customers explaining refund amounts and how to contest them. It also requires the companies to clear unpaid balances for incorrectly charged fees, pay customers for gas removed from tanks, and give mailed notice before changing fees for new or existing customers in the future.

In a statement included in the release, Strange said Alabama law requires clear notice of contract changes that create new fees and that businesses will not be allowed to impose fees on consumers under contracts that did not provide for them.

Sources

• Alabama Attorney General’s Office press release

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.