Fuels

Bill Meant to Prevent Predatory Pricing

Legislation prohibits stations from limiting amount of fuel sold

LANSING, Mich. -- Michigan State Representative Jeff Mayes (D) has introduced a bill that will make it illegal for gas stations to limit the amount of fuel sold to any customers, which will prohibit stations from discriminating against consumers and protect against predatory pricing.

Gasoline is a precious natural resource and the lifeblood of our economy, Mayes said. We cannot allow a small number of gas stations to play games with consumers. Retailers who advertise a certain retail price but then limit the amount that can be purchased [image-nocss] are engaging in a deceptive trade practice. That practice violates the notion of a free, fair and open market.

The bill has received support from the Michigan Petroleum Association/Michigan Association of Convenience Stores (MPA/MACS), which has about 550 member companies with more than 1,500 retail locations, employing approximately 15,000 people statewide in all of Michigan's 83 counties.

This legislation will go a long way in stopping the deceptive trade practice of advertising motor fuel for one price and then limiting the amount purchased in an attempt to eliminate your competition through predatory pricing, said Mark Griffin, president of MPA/MACS.

Mayes' bill does not apply during times of emergency.

By manipulating fuel prices and encouraging a volatile market, a few bad actors will continue to pull the rug out from under mom-and-pop stores that are just trying to get by. We must protect against predatory pricing, Mayes said.

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