Gas Station Sued Over Cheap Prices
ON THIS DAY IN HISTORY…
1765: Stamp Act passed; 1st direct British tax on American colonists, organized by Prime Minister George Grenville.
As Americans endure record-breaking prices at the pump, one station decided to keep their prices low. Now they’re facing lawsuits from competitors.
The plaintiffs, companies that operate nearby Shell and BP stations, are suing Woodman’s Market in Waukesha, Wisconsin, arguing that it’s selling gas below cost.
The competitors say Woodman’s low prices violate Wisconsin’s Unfair Sales Act, which prohibits selling goods below cost. Both plaintiffs seek roughly $80,000 in restitution, based on the number of days Woodman’s outpriced them.
On 3/19, AAA data showed that the average price of gas in Wisconsin was roughly $3.93. Woodman’s offered gas at $3.59 per gallon, while Waukesha BP and Shell locations listed prices of $3.89-3.99 per gallon.
Woodman’s has defended its prices. The stations claims it sets its prices to compete with its primary competitor, Costco, about six miles away in Pewaukee. GasBuddy listings showed that Costco offered gas at $3.49 per gallon.
Woodman’s has filed a counter-suit, seeking dismissal of the case.
“Woodman’s in in full compliance with its Waukesha store gas pricing and believes this lawsuit is without merit,” the company said in a statement to local ABC affiliate WISN.
“As such we have asked the court do dismiss this action.”