White Plains, NY – The Westchester County Board of Legislators (BOL) approved legislation last night that addresses deceptive trade practices in gasoline pricing signs.
The legislation, which received unanimous, bi-partisan support, was initially introduced by Westchester Legislator Michael Kaplowitz (D-Somers) because a number of gas station owners around the county charge a discounted price for those paying for gasoline in cash, yet signage posted at these establishments fails to explicitly inform customers the higher price of gas if the payment is made by a debit or credit card.
When signed into law by the County Executive, the new bill, which will amend Westchester County’s Consumer Protection Code and require gasoline station owners from engaging in deceptive trade practices and misleading representation regarding pricing signage, will take effect in six months and will result in a civil penalty not to exceed $1000 for each day the violation takes place.
“Hard-working Westchester residents should not be lured into a gas station with posted signage of a cash price for gasoline that is substantially lower than the debit or credit price at the pump,” said Kaplowitz, who serves as BOL Environment & Energy Committee Chairman. “I’m pleased that my colleagues on the County Board recognized this deceptive trade practice as ‘bait-and-switch’ and joined me in voting to change our Consumer Protection Code to prohibit it.”
In October, Kaplowitz held a press conference to draw attention to deceptive signage practice at Autobahn / Citgo Yorktown, a gasoline station whose owner, Ron Guarino, has been giving his customers full information on gasoline prices.
Throughout Westchester County, there are a variety of signs at local gas stations that display the cost of gasoline and serve to entice customers with low prices. Some gas stations charge the same price for gasoline regardless of type of payment—cash, credit or debit—while others, claiming that debit and credit cards fees from banks eat into their profits, charge a discounted price for cash. The problem rests on gas stations where the cash price is explicitly posted on signage, but the higher credit and debit prices are only noted at the pump in less noticeable signage.
At the October press conference, Guarino noted only about 10% of his customers make their gasoline purchases with cash, and said, “Customers have a right to know upfront how much a gallon of gasoline will cost at the pump—it shouldn’t come as a surprise.”
