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WHERE'S THE OUTRAGE?

CURRENT EVENTS

I RAN THIS THROUGH SNOPES AND DIDN'T GET ANY HITS.

ANYBODY ELSE HEARD THIS YET?

Gas station owner told to raise prices

2 hours, 7 minutes ago

MERRILL, Wis. - A service station that offered discounted gas to senior citizens and people supporting youth sports has been ordered by the state to raise its prices.

Center City BP owner Raj Bhandari has been offering senior citizens a 2 cent per gallon price break and discount cards that let sports boosters pay 3 cents less per gallon.

But the state Department of Agriculture <http://search.news.yahoo.com/search/news/?p=Department+of+Agriculture>, Trade and Consumer Protection says those deals violate Wisconsin's Unfair Sales Act, which requires stations to sell gas for about 9.2 percent more than the wholesale price.

Bhandari said he received a letter from the state auditor last month saying the state would sue him if he did not raise his prices. The state could penalize him for each discounted gallon he sold, with the fine determined by a judge.

Bhandari, who bought the station a year ago, said he worries customers will think he stopped the discounts because he wants to make more money. About 10 percent of his customers had used the discount cards.

Dale Van Camp said he bought a $50 card to support the local youth hockey program. It would have saved him about $100 per year on gas, he said.

Vaughn Tolle said:
 
Tracy, all I know is that Wisconsin has such a statute, and that the potential penalty for violation would be as indicated in the article.
 
posted 926 days ago
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Man, this oughta make Lou Dobbs Happy!
NEW TOPIC for him, huh?
 
posted 926 days ago
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Julie said:
 
yeah, it was plastered all over yahoo and was in the weird news section of the Eagle this past week
 
posted 926 days ago
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Julie said:
 
I'm slow this week sorry.
Isn't this a form of price fixing? How can we support a free market and free enterprise if what you sell has to be X price?
And we wonder why oil companies are reporting record breaking profits.

Who do we contact about this to get it fixed?
 
posted 926 days ago
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Vaughn Tolle said:
 
Julie, the Wisconsin Fair Trade Law is a bit of an anachronism. Many "progressive" states passed laws such as this in the 1920s, IIRC, for the purpose of protecting the in-state merchants from unfair competition from the "price cutters" headquartered in neighboring states, such as one would call WalMart today. To change the law, one would need to convince the Wisconsin legislature to repeal it.
 
posted 926 days ago
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Vaughn Tolle said:
 
I should have said the Wisconsin Unfair Sales Act in my earlier post.

Link below is to an FTC opinion from 2003 addressing the specific state statute in question, along with a short explanation of why it was adopted, and why, in the opinion of the FTC, it (the Act) is no longer needed.

http://www.ftc.gov/be/v030015.shtm
 
posted 926 days ago
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Vaughn Tolle said:
 
Tracy, use of "the google" reveals a number of links to articles in various Wisconsin newspapers, etc. from the recent past on this story. As posted before, I believe the same to be accurate.
 
posted 926 days ago
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Julie, call the White House.
Bush, Cheney and friends just hate those big money oil boys.
 
posted 926 days ago
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Vaughn Tolle said:
 
Whoa, whoa, whoa; it isn't the big money oil boys profiting here, it's the gasoline retailer who is profiting. While many of these are owned by the oil companies, many are not. The refiners' and wholesalers' prices aren't affected by this statute.
 
posted 926 days ago
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Rox said:
 
Like Julie, I saw it on Yahoo news yesterday.

Face it, if you try to help people, you get nailed for whatever can be dreamed up.
 
posted 926 days ago
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Vaughn Tolle said:
 
Rox, I appreciate the sentiment. What the gentleman was doing, however, is a clear violation of the Wisconsin statute.
 
posted 926 days ago
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Julie you're right, that was on Bob Manning's list.
Every good deed will be punished.
 
posted 926 days ago
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Vaughn Tolle said:
 
(Forgot to copy the link). On "the google", found that Maryland, Minnesota and New York State have "minimum markup" laws similar to Wisconsin's in the gasoline area. The same article said "and several other states" without identifying them. Found a separate reference to Florida in the gasoline area, but that prohibits a sale below the wholesale price.

The Wisconsin statute was enacted in 1939; the other states identified enacted their statutes in the 1930s as well.
 
posted 926 days ago
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longhorn said:
 
And in New Jersey, it's illegal to have self serve gas. You CAN NOT pump your own gas. Ever. You know I am a big time union supporter, but THAT little gem was brought to you by the New Jersey Teamsters.

And doesnt Kansas essentially price fix on alcohol? Not the three.two variety, but real booze?

Thank the distributor lobby. The same ones that wont allow wine and six percent beer to be sold in groceries and convenience stores. Or restaurants without a full liquor license. In Texas, you can see both wine and six beer on a beer license. Anything up to twelve percent. And near beer is illegal.
 
posted 926 days ago
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lindainks55 said:
 
Wouldn't want someone to get hold of NEAR BEER! Why waste the money!?
 
posted 926 days ago
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Rox said:
 
Yes, VT, I understand that it's the law and that it was being broken. Of course it has a legitimate history and sound reasoning in that history.

But when I drive by the gas station and hear how tough it is for many to just be able to drive to work, I just get grumbly. :)

The rape of America continues.
 
posted 926 days ago
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Vaughn Tolle said:
 
Rox, and others, to be sure the "minimum markup" laws were thought to be helpful or needed when they were passed. As lh has pointed out, there are some of these laws which have been exploited by various groups for their own benefit. As I noted in my post upthread, these are now anachronisms. I think they all need to be repealed. However, in reading articles on "the google", there seems to be a substantial number of legislators in Wisconsin opposed to repeal of the statute in question. This makes me grumbly, too.
 
posted 925 days ago
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