Lebanon Gas Wars ($2.78/gallon!)

[FishinCricket]

http://www.lebanondailyrecord.com/news/local/article_68319692-c513-11e0-9de2-0019bb30f31a.html

A tad bit of backfill:

The local Eagle stops are owned by one man, who is also a local distributor. The Johnson stations (conoco's) are all owned by another man, also a local distributor.

Both own fuel stations/convenience stores across the street from one another in two separate locations in town (all along I-44), one grouping is at my interstate exit (127 exit).

Both will start the day at a "reasonable" value ($3.29/gal today) and then one will lower their price two cents. Then the other will lower theirs 4 cents.. Etc, etc... As soon as the one store closes (7 pm) the other store goes right back to that "reasonable" value that they started with. Sunset, sunrise, back at it again.

I gotta say myself (and my dealership) have been raking in the savings!!

Then I read the article above today.. Now, I may not be in the gas business, but I am in the retail business and I can't seem to wrap my head around these stipulations that gas stations are under... For instance (from the article):

According to Nanci Gonder, spokesperson for the Missouri Attorney General’s Office, it could be against the law for gas stations or convenience stores to sell fuel for lower than what they paid for it themselves if the seller intends to injure the competition or sell other merchandise. 

That ain't how it works in any other retail business! I am allowed to make whatever profit or loss I would like!

So, forum lawyers, explain this to me in terms I can understand?

[ness]

I'm not a lawyer, but I play one on the internet.

The law is likely targeting anti-competitive practices that are causing harm to someone. These are competitive practices and they're only hurting themselves.

Next case.

[laker67]

Today, I bought gas at one of the stations in question. Price was 3.11 at the pump, but the advertised price was 2.91 on the overhead sign. When I asked about the advertised price, I was told that you had to purchase a 12 dollar car wash to get it at 2.91. My question to a lawyer, is that misleading advertisement?

[FishinCricket]

Today, I bought gas at one of the stations in question. Price was 3.11 at the pump, but the advertised price was 2.91 on the overhead sign. When I asked about the advertised price, I was told that you had to purchase a 12 dollar car wash to get it at 2.91. My question to a lawyer, is that misleading advertisement?

You obviously didn't see the "w/car wash" fine print on the sign..

[Danoinark]

I remembered "gas wars" years ago when competing stations did the same. I don't recall any legal actions, but that may have been before lawyers. I recall in the early 60's you could pick up a gal of fuel for 11 cents during these "wars".

[ness]

Wow, $0.11! I remember $0.29, and I thought that was really something. Prolly the late 60's. When was that, Dano?

[Danoinark]

Wow, $0.11! I remember $0.29, and I thought that was really something. Prolly the late 60's. When was that, Dano?

Had to be early 60's probably prior to 65. Over in East Ark.

[laker67]

You obviously didn't see the "w/car wash" fine print on the sign..

I will guarantee you that it is very fine print.

[FishinCricket]

I will guarantee you that it is very fine print.

Not really, the letters are about 12 inches tall, but the sign is a hundred feet up there... :shrugs:

[FishinCricket]

I will guarantee you that it is very fine print.

Hmm, interesting, a guarantee! Since you put it that way, lemme double check my facts. Here's the sign in question, right? (the one on Jefferson/HWY 5)

Also, their highest priced automatic car wash was/is 7 dollars, not $12 (as you said in your first post)and you only have to buy the cheap car wash, which is $4. (the car wash is only valid for a certain amount of time and they limit the amount of fuel you can buy at that discounted price to $60 worth)

Not wanting to be contrary (my apologies right now if I come off that way) and certainly not trying to defend the companies silly business practices, but your accounting of their advertising as well as pricing is a bit off....

Now there's another company in town (neither of these two) that advertises a "cash price" on their sign and it's usually 2-10 cents cheaper than the price on the pump.. That seems different to me. Anyways..