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Consumer Affairs

New York Warns Gas Stations Against Bait & Switch Advertising

Prices displayed on signs must match prices at the pump


photoNew York Attorney General Eric T. Schneiderman has issued cease and desist letters warning several Watertown gas station locations that they will face possible court action if they do not stop falsely advertising one price, and then charging customers more at the pump.

In recent days, the Attorney General's Watertown Regional Office sent letters to the owners of Valentine Stores, Inc., Rajit Inc. and General Store, Inc. stating they needed to discontinue the deceptive roadside marketing.  

At least four of the Nice N Easy gas stations, owned by Valentine Stores, with locations throughout Watertown, the Valero Gas Station on Arsenal Street, and the General Store on Bradley Street engaged in false advertising by listing the lower prices on their large street-view signage in order to lure patrons to the pump, Schneiderman said.  The lower price was for "cash only" transactions.  The only text displayed to passing motorists indicating that this was the "cash" price was small and not easily visible.

Classic example

"What these gas stations did is a classic example of bait and switch. Consumers were lured in by the lower price but when they went to fill up their tanks, they were hit with a higher price if they didn't pay with cash," said Schneiderman. "At a time when gas prices are high enough already, my office will work to make sure consumers are not tricked into paying a penny more by such deceptive practices."

The announcement comes at a time when reports show gasoline prices this summer are on average one dollar higher than they were at this time last year. According to the American Automobile Association (AAA) the current average price for gasoline in New York State is $3.97. Last year at this time, the average price was $2.91.

Schneiderman said his office is continuing to monitor gas prices throughout the state on all levels, from the gas retailer, distributor and manufacturer. Prices at the pump have led to an increase in consumer complaints to the Attorney General’s office, and Schneiderman has directed his staff to compile data on the prices charged by gas retailers, as well as information on the chain of distribution, to determine the cause behind the continued increases.

 

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