Chevron Class Action Calls Oil Recycling and Shop Supply Fees ‘Bogus’

Chevron Products Company, a division of Chevron USA d/b/a Havoline Xpress Lube, has been hit with a class action lawsuit accusing it of charging “bogus” fees to recycle or dispose of used oil and/or for shop supplies.

“For many years, Chevron … engaged in improper oil change practices requiring plaintiffs and other class members to pay fees associated with recycling or disposing used oil generically entitled environmental fees or environmental service fees or hazardous waste disposal fees or similar designation,” plaintiffs Donald E. Potter and Phillip Novak allege in the Chevron class action lawsuit.

Although these fees appear to be a legitimate regulatory or governmental charge, the plaintiffs claim that there was no lawful regulatory charge mandating the collection of these fees. Even if a governmental charge did exist, the plaintiffs allege that the amount of the fee charged by Chevron bears no reasonable relationship to a legitimate governmental charge.

“In fact, oil destined to be recycled according to the Petroleum Institute of America is not considered to be hazard waste by the federal government or 48 states and the used oil and used oil filter generated from an oil change is frequently sold, often at a profit, to oil recyclers for refinement and resale for various uses,” the Chevron class action lawsuit says.

Potter and Novak claim that charging oil recycling and shop supply fees is a known unfair and deceptive practice within the lube industry.

They each claim that they had their vehicles’ oil and filter changed at Havoline Xpress Lube locations in Illinois. After the service was complete, they say they were presented with a standard invoice bearing the Havoline Xpress Lube-Chevron logo.

Potter says the invoice he received included an itemized charge of $4.14 for a hazardous waste disposal fee. Novak’s invoice allegedly included an itemized charge for shop supplies in the amount of $2.99.

According to the Chevron class action lawsuit, Potter and Novak would have objected to the fees if they had known they were unlawful, unfair or deceptive.

“The purpose or reason for the recycling and shop supply fees were not provided to the customers, nor was the method of calculating the fees disclosed to its customers at the point-of-sale or at any time before or after the oil change,” the Chevron class action lawsuit alleges.

Potter and Novak claim that the only motive for the fees “was to enhance profits, disadvantage honest competitors and conceal the true nature of the charges.”

They filed the Chevron class action lawsuit on behalf of themselves and a proposed Class of consumers who were charged and paid a fee purportedly associated with recycling or disposing of used oil and/or for shop supplies in connection with an oil change performed by Havoline Xpress Lube in the United States.

The Chevron class action lawsuit asserts claims for breach of contract, breach of the covenant of good faith and fair dealing, unconscionability, unjust enrichment, negligence, and violation of California’s Unfair Competition Law.

Potter and Novak are represented by Donald K. Birner Attorney at Law and Kaiser U. Kahn of Law Offices of Kaiser U. Kahn.

The Chevron Oil Recycling Fees Class Action Lawsuit is Donald E. Potter, et al. v. Chevron Products Company, Case No. 3:17-cv-06689, in the U.S. District Court for the Northern District of California.