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.
Valero Marketing and Supply Co. has agreed to settle a class action lawsuit that accused the company of falsely advertising fuel prices.
Lead plaintiff Faith Bautista claimed Valero advertised a discounted gas price for consumers paying with “cash,” but failed to disclose that debit card purchases weren’t eligible for the cash price and would instead be charged the credit price.
Bautista had argued that debit cards are often used as a “safer cash-equivalent” by Americans who lack the credit history needed to obtain a credit card or can’t afford the fees and interest rates charged by credit card companies.
Because many of those same people are low-income, they are “lured into Valero-branded gas stations” with the promise of a lower price for gas purchased using cash.
“Based on their reasonable and accurate belief that a debit card is the equivalent of cash, reasonable consumers, including Plaintiff and the members of the Class, believe that they will be charged the cash price on gasoline purchased with a debit card,” the Valero gas prices false advertising class action lawsuit said.
The plaintiff maintained that because a debit card is “the equivalent of cash,” reasonable consumers would believe they were going to be charged the cash price rather than the credit price.
In addition, the “credit” price of Valero gas results in a surcharge on debit card transactions “that is substantially more than the amount allowed by federal law,” the class action lawsuit stated.
The class action lawsuit, originally filed in December 2015, alleged violations of California’s Consumer Legal Remedies Act, False Advertising Law, and Unfair Competition Law, in addition to breach of contract.
The parties involved in the Valero gas prices false advertising class action lawsuit went through several rounds of mediation in an attempt to resolve the case, finally coming to an agreement in December 2019, according to the settlement agreement filed with the court.
The Valero gas prices false advertising class action lawsuit sought to certify a Class that includes anyone who, between Dec. 3, 2011, and the date of the preliminary approval date of the settlement “purchased gasoline using a debit card at a Valero-branded station in California that advertised a ‘cash’ price and ‘credit’ price on Relevant Valero-Branded Signage but the Relevant Valero-Branded Signage did not affirmatively disclose how gasoline purchased with a debit card was priced, and were charged more money per gallon than the advertised ‘cash’ price.”
Valero denies any wrongdoing or liability, and maintains that neither the plaintiff nor proposed Class Members have been injured or are entitled to relief. However, due to the “uncertainties, risks, expenses, and business disruptions” that could be caused by continuing litigation, the company has agreed to the settlement.
The company agreed to injunctive relief that will permanently stop it from advertising Valero gas prices in California that include “cash” and “credit” but not “debit.” Valero-branded stations must indicate how debit cards will be charged.
Changes related to this relief must be made in Valero’s Wholesale Branding Manual.
However, the settlement agreement recognizes that Valero “does not own, operate, or manage the Valero-branded stations” and does not “meaningfully control the branded stations’ pricing and/or use of their signage and the point of sale systems.”
Therefore, Valero will not be considered to be in violation of the permanent injunction if the owner or operator of a Valero-branded station advertises “cash” and “credit” prices, but not “debit” prices.
If a Valero-branded station refuses or fails to comply when it is informed of its noncompliance, “Plaintiff and the Settlement Class’ sole remedy” will be against that station, not Valero.
If the Court approves the settlement, Valero will pay Class Counsel up to $1,650,000 in fees and expenses.
According to the settlement agreement, Bautista will be entitled to a service award of no more than $2,000 for “actual, out-of-pocket expenses incurred in connection with the Plaintiff’s service as a Class representative.”
The money will be paid from Class Counsel’s $1.6 million award.
Have you been confused by Valero gas prices? Tell us about it in the comments section.
The plaintiff is represented by Rafael Bernardino Jr. and Jason A. Hobson of Hobson, Bernardino & Davis LLP; and Patrick W. Daniels, Stuart A. Davidson, Mark J. Dearman, Christopher C. Martins and Roxana Pierce of Robbins Geller Rudman & Dowd LLP.
The Valero Gas Prices False Advertising Class Action Lawsuit is Faith Bautista, et al. v. Valero Marketing and Supply Co., Case No. 3:15-cv-05557-RS, in the U.S. District Court for the Northern District of California, San Francisco Division.
Read About More Class Action Lawsuits & Class Action Settlements:
Cars.com Class Action Lawsuit Alleges Violation of California Privacy Law, Secretly Records Visitors
J&J Seeks to Dodge Claims that it Hid Asbestos Content in Talc Products
340 thoughts onValero Agrees to Gas Prices Class Action Settlement
Please add me
Please add me