NORTH PLATTE, Neb. -- Nebraska Attorney General Jon Bruning warned some gas stations operators in North Platte on Tuesday to stop using bait-and-switch tactics on customers traveling along I-80, or be prepared to be sued.
According to The Nebraska State Paper, Bruning said deceptive advertising practices were being used by some convenience stores at the North Platte intersection of U.S. Highway 83 and I-80.
Common sense tells you that they are stealing roughly $5 to $10 a tank from anyone who stops, Bruning said after his inspections.
After receiving numerous complaints to his office in Lincoln, Bruning inspected a Conoco station owned by Mark Wilkinson and two BP stations owned by Roy Wagner.
What is happening here is an absolute travesty, and I don't think it's happening by chance, Bruning said.
The stations were advertising competitive prices on their large signboards, but charging as much as 50 cents higher at all but one of their pumps, the report alleged. Many customers don't notice the price difference on the pumps and end up paying as much as $10 to $25 more than expected, it added.
Bruning called it a bait and switch tactic. He said the state's consumer protection act bars deceptive trade practices.
He said notices have been served on both owners, demanding that they turn over records and respond to a variety of questions within 10 days or face civil lawsuits from the state.
Bruning said both stations could face fines of up to $2,000 per incident, but said he had no idea how long the practices have been going on.
The AG's office has received complaints about the I-80 stations in North Platte for some 18 months, said the report.
Wilkinson told the newspaper that the advertising strategy reflected marketing and competition; Wagner said that competition drove him to the practice.
We resisted for over a year, Wagner told the paper. But we were losing 25% of our business to our competitor. Any business owner knows that you can't give away 25% of your business and expect to stay in business.
Numerous complaints have been received by travelers who bought gasoline at the stations, the report said. Letters have been written to the City of North Platte, the Chamber of Commerce and local newspapers. And many letters to the editors have appeared over the years, the Nebraska State Paper added.
Bruning said not all North Platte stations practice deceptive pricing. He said stations in town, off the interstate highway, were not the problem. But he said the deceptive pricing, which he claimed to have witnessed first hand Tuesday, gave the entire state a black eye with out-of-state visitors, said the report.
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