SAVANNAH, Ga. -- Greg Parker,president of convenience store company The Parker Cos., testified yesterday at a hearing over the legal status of the chain's PumpPal discount gasoline program over which the parties involved have reached a compromise.
PumpPal members save at least 10 cents a gallon on gasoline. The program uses two-tier pricing, in which the price available to customers using other payment methods is posted along with the discounted club price.
The program was recently in danger of being suspended while a court case determined the legality of its advertising. Parker filed suit to block the state of Georgia's plan to end the way he advertises the program, and a judge in December determined that it could continue pending the outcome (see Related Content below for previous CSP Daily News coverage).
Watch the embedded video or click here for details on PumpPal.
The Georgia Department of Agriculture held the second and final public hearing Wednesday on a proposed amendment that would allow Parker's and other gas retailers to advertise members-only prices on permanent roadside signage so long as the price is marked as such on the sign. Retailers will also be required to provide an explanation on qualifications for the lower price on the pump, reported The Savannah Morning News.
Parker's will paste a sticker on its pumps outlining its PumpPal program, said the report.
The rule change next goes to the Georgia Secretary of State for review and approval. The new rule would go into effect 20 days after the Secretary of State signs off on it and retailers will then have 90 days to comply.
"This department salutes companies that give choices to consumers," said Gary Black, the state's agriculture commissioner. "But we also have a responsibility to make sure the consumers know what they are getting. This rule change will benefit the consumers."
In testimony provided to CSP Daily News, Parker said, "I'm delighted that we've been able to reach an accommodation that addresses the commissioner's concerns while preserving truthful advertising and the Parker's PumpPal loyalty club program," Parker testified.
"I firmly believe that an informed consumer is an empowered consumer. To me, this has always been, first and foremost, a consumer rights issue. There was some concern that advertising Parker's club pricing on street signage might be confusing to the customer. In fact, our PumpPal program has been extremely popular and our discounted pricing has been exceptionally well-received at all of our retail locations," he said. "We currently have 47,000 PumpPal members enjoying discounted gas prices seven days a week at all of our Parker's locations in coastal Georgia and South Carolina. Since the PumpPal program at Parker's first launched in March of 2011, this initiative has saved consumers more than $1.7 million on gas. That's real savings for our customers during tough economic times."
Parker concluded, "The preliminary ruling by Chatham County Superior Court Judge Louisa Abbot levels the playing field by allowing any other convenience store retailer to adopt a similar program to Parker's. This strikes me as a remarkably fair opportunity for all area convenience store retailers."
The Parker Cos. is a leading c-store chain in Georgia and South Carolina. The Savannah, Ga.-based company owns and operates 27 stores in Bluffton, S.C., and the Southeast region of Georgia.
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