BP class action claims gas stations surcharge customers who pay by credit card

BP class action overview: 

• Who: BP Products North America is facing a class action lawsuit related to the advertised cash-only prices at Amoco stations in New York. 
• Why: The Amoco stations are accused of charging credit card customers 70 cents per gallon more than the advertised price, a violation of New York’s General Business Law.
• Where: The BP gas stations class action was filed in federal court in New York.

BP Products North America is facing a class action lawsuit claiming that Amoco stations in New York are charging 70 cents per gallon more than advertised for consumers using a credit card.

The advertised price on the large display boards and price boards is the cash-only price while the price for those using a credit card is higher, the BP lawsuit says.

That price scheme is a violation of the New York General Business Law, the lawsuit claims, because it prevents posting lower prices that turn out to be only for cash-only purchases. The New York State Division of Consumer Protection has said that businesses are required to inform customers of the higher price and should then offer a discount for other payment methods at the register if desired.

“To attract price-conscious motorists, Amoco stations prominently display the price of gas from pylons and price boards in red LED numbers from pylons and sign boards containing or connected to its company logos, brand name and color scheme, to motorists in need of a fill up,” the BP gas stations class action says.

Credit cards used by 96% of gas station customers, BP surcharge lawsuit says

Credit cards are used by 96% of customers at gas stations, the BP surcharge lawsuit says. 

A study from the National Association of Convenience Stores said that 60% of consumers would drive five extra minutes for a 5 cent per gallon gas savings while 40% would drive twice that far, according to the BP lawsuit.

Price is the most important factor in choosing where to get gas for 79% of customers, another study cited by the lawsuit showed.

Two class action lawsuit complaints were filed against BP and other energy companies after those companies allegedly charged rates that were 100 times — and one day 200 times — the normal natural gas rates before Winter Storm Uri.

Have you gone to purchase gas based on an advertised price and found you were charged more for using a credit card? Let us know in the comments.

The plaintiff is represented by Spencer Sheehan of Sheehan and Associates PC, James Chung of Chung Law PC and Michael R. Reese of Reese LLP.

The BP surcharge class action lawsuit is Betzag v. BP Products North America Inc., Case No. 2:23-cv-09602, in the U.S. District Court for the Eastern District of New York Central Islip.

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