Franchisees File Class-Action Lawsuit Against BP

The 15 ampm, ARCO and BP station owners are alleging that the oil company influences gasoline pricing and supplies.

May 04, 2011

SAN FRANCISCO - Franchise owners of 15 ampm, ARCO and BP stations have filed a class-action lawsuit against BP, Courthouse News reports.

The lawsuit claims the oil company maneuvers gasoline pricing and supplies in order to capitalize on oil futures. The federal class-action suit also alleges that BP made franchisees use a flawed POS system that triggered customer criticism and harmed their businesses.

Leading the plaintiffs, Green Desert Oil Group charges that BP sold the plaintiffs ARCO-brand filling stations "on the notion that ARCO has been and would continue to be known for its low-priced gasoline strategy as compared with other national brands, mainly due to an early 1980s decision to emphasize cost cuts for cash-only policy at its fuel pumps."

At the heart of the lawsuit is a claim that the oil company influences "gas pricing by deliberating delivering gas before or after price increases or decreases that serve to increase the sales price charged to franchisees." The franchisees are asking to be certified as a class, as well as seeking damages and an injunction to get rid of the defective POS system.

Advertisement
Advertisement
Advertisement