Shell Oil False Ad. Ski Ticket Class Action Continues

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

A class action lawsuit against Shell Oil Products US over a promotion in which customers were told they would receive a free ski lift ticket if they bought 10 gallons of gas will continue, an Oregon federal judge has ruled.

U.S. District Judge Marco Hernandez dismissed all of the state allegations from the Shell Oil class action lawsuit but kept the breach of contract claim against the oil giant.

Hernandez dismissed the allegations that Shell violated consumer protection and unlawful trade laws in Oregon, California, Michigan, Colorado, and Washington, which would have made up subclasses in the deceptive marketing class action lawsuit.

According to the eight plaintiffs, led by Oregon resident John Martin Kearney, Shell Oil displayed an advertisement which said, “Buy 10 Gallons of Fuel, Get a Voucher for a Free Lift Ticket!”

“After individuals purchased ten gallons of fuel and requested a voucher for a free lift ticket, they received a voucher with their purchase receipt,” the federal judge explained in his decision in the Shell Oil false advertising class action lawsuit.

However, “this voucher could not be exchanged directly for a free lift ticket, but rather was a ‘two for one’ coupon that allowed the individual to obtain a free lift ticket only after purchasing a lift ticket at full price at a participating ski resort.”

The voucher came with “other restrictions,” as well, such as having “to secure the presence of another skier in order to successfully obtain his ‘free’ lift ticket,” the plaintiffs claimed in their false advertising class action lawsuit.

The plaintiffs proposed one nationwide class for breach of contract, three claims for Oregon residents for unlawful trade practices, a Colorado subclass alleging a violation of the Colorado Consumer Protection Act, a California subclass over its Consumer Legal Remedies Act and its unfair competition and false advertising laws, and a Washington subclass for alleged unfair business practices.

Shell Oil wanted the breach of contract allegation dismissed, saying that plaintiffs failed to state a claim. It also wanted the state allegations dismissed because it said they were insufficiently pled and the plaintiffs had failed to state a claim over those allegations, as well.

Judge Hernandez said about the breach of contract claim that the plaintiffs in the Shell class action lawsuit, “as the recipient of the advertisement, ‘reasonably might have concluded that by acting in accordance with the request a contract would be formed.”

Therefore, “the clear offer in the advertisement established a unilateral contract, and plaintiffs accepted the offer through performance by purchasing 10 gallons of fuel at a Shell station participating in the ‘Ski Free’ promotion.”

He explained that while typically common law advertisements are “‘not ordinarily intended or understood as offers to sell,'” there is “‘an exception for offers of a reward, including offers of a reward for the redemption of coupons.'”

Judge Hernandez agreed with Shell Oil that the plaintiffs have not adequately pled the state claims with enough specificity. However, he is allowing plaintiffs to amend those claims, if they want.

“Plaintiffs have failed to plead with particularity the who, when, and where of their state statutory claims,” Judge Hernandez wrote.

While, he said, that it is not necessary to “identify every franchised Shell station which may have displayed the alleged false advertising. However, plaintiffs are required to at least state with the specificity the ‘who, what, when, where, and how’ of the misconduct charged in relation to plaintiffs’ named class representatives.”

The plaintiffs are represented by Rick Klingbeil of Rick Klingbeil PC, Robert A. Curtis of Foley Bezek Behle & Curtis LLP, Brady Mertz of Brady Mertz PC and Brooks F. Cooper of Draneas & Huglin PC.

Shell Oil is represented by Abby L. Risner, Daniel R. Garner and David M. Harris of Greensfelder Hemker & Gale PC and Brad S. Daniels of Stoel Rives LLP.

The Shell Oil False Advertising Class Action Lawsuit is Kearney v. Equilon Enterprises, LLC et al., Case No. 3:14-cv-00254, in the U.S District Court for the District of Oregon.

UPDATE: On April 29, 2016, Shell reached a proposed $2.2 million class action settlement agreement over allegations it misrepresented the terms of a “free” ski lift ticket to customers who bought 10 gallons of gas.

UPDATE 2: The Shell Ski Free class action settlement is now open! Click here to file a claim!

UPDATE 3: On Dec. 17, 2016, Top Class Actions readers who submitted valid claims for the Shell class action settlement started receiving checks worth as much as $40! Congratulations to all our viewers who got PAID!