McDaniel Files Suit Against Ferrellgas

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December 04, 2007

Deceptive Trade Practices Alleged


LITTLE ROCK- Yesterday, the Attorney General's office, on behalf of the State of Arkansas and 45,000 Arkansas Ferrellgas customers, filed suit against Ferrellgas for violations of the Arkansas Deceptive Trade Practices Act ("DTPA").

"I have gone to great lengths to resolve these issues with Ferrellgas, but it has been unwilling to compromise on what I believe are extremely reasonable terms," McDaniel said. "I had hoped to have this resolved before the cold winter months. However, filing suit is the only option the state has left in this matter."

The Attorney General contends Ferrellgas violated the DTPA by altering existing agreements between it and its Arkansas customers with the initiation of a "Master Agreement for Propane Sales and Equipment Rentals" in 2004. The 23-page "Master Agreement" changes basic and vital provisions of a customer's original 2-page agreement with the Company. Through the "Master Agreement", Ferrellgas attempts to collect a myriad of new fees even though customers never consented or agreed to a modification of their original agreements with Ferrellgas. Additionally, Ferrelgas forced customers to choose between paying these unauthorized fees or going without heat.

The Attorney General's Office began receiving complaints regarding the business practices of Ferrellgas in the fall of 2005