SALEM, Ore. -- Oregon Attorney General Hardy Myers has announced the filing of a settlement agreement with Pilot Travel Centers LLC, Knoxville, Tenn., after warning the company three times to comply with Oregon's gasoline pricing rules.
The Assurance of Voluntary Compliance (AVC) filed in Marion County Circuit Court admits no law violation on the part of Pilot.
One would think that a national company would take advantage of being warned about changing its misleading advertising of gasoline in its Oregon stations and change it [image-nocss] ways, Myers said. Unfortunately, it didn't, and we had to take a stronger law enforcement approach.
Mitchell Steenrod, vice president and CFO for Pilot travel Centers, told CSP Daily News, "Over the course of the past six months and subsequent to a period of negotiation with the state of Oregon, Pilot Travel Centers LLC has invested substantial funds in signage to comply with the state of Oregon's multi-price posting regulations. Pilot Travel Centers believes that the signage at our retail facilities will be in full compliance with Oregon's multi-price posting regulations when the new sign installation is complete by the end of January"
In the first instance, investigators from the state Measurement Standards Division of the Department of Agriculture found the company was violating Oregon's gasoline pricing rules and referred the complaint to the state Department of Justice. Subsequently, the Justice Department received two more consumer complaints. All three consumer complaints resulted in the Justice Department formally warning the company in each instance.
Pilot has seven Oregon locations: Brooks, Central Point, Chemult, Oakland, Ontario, Stanfield and Wasco.
The company was first put on notice by the Justice Department when one of its Oregon stations used signs that only displayed a cash price for regular unleaded and No. 2 diesel grades when the rules require stations using signs to post the lowest cash price of all grades sold. Furthermore, the price for the No. 2 diesel did not match the price on the pump in violation of another gasoline pricing rule.
In Oregon, gas stations now sell two grades of diesel; No. 2 diesel is for noncommercial use by consumers and PUC diesel for business. In posting these two diesel grades, the PUC commercial diesel appears to be cheaper because business pays all taxes upfront and they are not included on the signage. The No. 2 noncommercial diesel signage must include taxes and will be posted at a higher rate.
The second warning concerned another station that incompletely listed all grades of fuel offered.
The third notice was the result of a complaint from an Oregon recreational vehicle owner. As practiced by many RV owners, this consumer checked gasoline prices online before traveling and planned where to fill up based on posted prices on the Internet. Pilot posted its gasoline prices online with a disclaimer that prices are not guaranteed, but posted its PUC diesel price.
The sign at a third station displayed the prices for unleaded, plus, premium and PUC diesel but failed to include the price for No. 2 diesel.
Gasoline stations have no excuse for failure to comply with Oregon's longstanding gas pricing rules, Myers said. Station owners know that consumers depend on the accuracy of signage in order to determine where to find the best gas prices for their needs. If it isn't truthful, consumers and competitors will make sure we know about it.
Under the agreement, Pilot must disclose any limitations or required exemptions on the advertised price of gasoline or diesel listed on its website. Pilot also must comply with Oregon's gasoline pricing rules including displaying the lowest cash price on all grades of gasoline sold at the station and clearly posting all conditions relating to those cash prices.
Pilot cannot charge more than the amount registered on the dispensing device and must display a sign on the pump face stating the cash price when there is a discount for cash program so consumers can see both the cash price and the displayed credit price.
The company also agreed to pay $20,000 to the Department of Justice Consumer Protection & Education Fund.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.