Raj Bhandari purchased his Center City WI BP gas station about a year ago and has been offering some of his customers discounts. While his intentions may have been good, he recently has been contacted by the state of Wisconsin's Department of Argriculture, Trade and Consumer Protection and informed that his discounts violate that state's Unfair Sales Act.
His offer of a discount card to sports boosters that gave them a 3 cents a gallon discount and offering a discount of 2 cents a gallon to senior citizens seem to be well intentioned. Irregardless of his intentions, the state's Unfair Sales Act requires all stations to sell their gas at no less than cost and that cost includes a 9.18% markup over the average posted terminal price. Violations of this law may result in a civil forfeiture being ordered that can amount to $50 to $500 for the first violation and $200 to $2500 for subsequent violations. He may also be liable for damages claimed but his competitor's by his discounts.
Bhandari said that about 10 percent of his customers have used either the $50 discount cards or took advantage of his senior discount. He will no longer be offering either of those since receiving his letter but he is afraid that his customers may think he is trying to make more money by discontinueing it.
I don't know how much money Bhandari may have lost with his discounts, nor how much money he may have encouraged citizens to give in support of youth sports as boosters. His discount seems to be an offer of goodwill to customers, sadly, one that Wisconsin state law makes illegal. I hope that his customers do understand that it is the law and not his greed that ended this gesture.
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