Q&A – Are Gas Stations Using Bait & Switch Tactics w/Cash vs. Credit Prices?
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Today’s entry: Hey, Brian, I wonder if you can explain, don't gas stations have to, advertise both cash and credit if they offer that? I pulled into a gas station. It said $3.89 cash, put in my credit card thinking it was going to be $4.09, $4.99 for a credit card. Just insane. Don't they have to advertise that? Isn't that like bait and switch? Isn't there a law against that kind of stuff? I wonder if you can explain what the, what the issue is.
Bottom Line: What you’ve identified is what could be considered a current loophole under Florida law, and perhaps an area of reform you could call on your state representative and state senator to address if you’re inclined. I’ll explain, but first here’s what Florida law states about the displaying of gas prices by gas stations:
- The posting at retail service stations of a different price for the same grade of gasoline dispensed from one pump than from another pump supplied from a common storage at the same service station when represented to be and is sold as the same quality of gasoline is unlawful.
- This section shall not be construed to prohibit a price differential between a cash sale and a credit sale of the same grade of gasoline or between self-service pumps and attendant-controlled pumps supplied from a common storage at the same service station.
Like a lot of legalistic stuff that might sound a bit confusing, so I’ll break this down. First and foremost, it’s not what is stated in those statues that’s most instructive in this conversation...it’s what isn’t. You might have noticed that there’s nothing requiring gas stations to post prices for gas at all. That’s right, there’s no legal requirement for displays for gas prices being visible prior to you arriving at the pump.
This is why, for example, many gas stations only post regular unleaded prices and why some opt to display diesel prices while most don’t. It’s also why many don’t post gas prices at all. And at first thought you might think, wait – what gas station doesn’t post prices (because who’d just visit a gas station without having an idea of what they might pay for gas)? You will occasionally find a gas station seemingly in the middle of nowhere that won’t post prices. Where it’s common is at membership stations, a la Costco.
Given that gas price displays are optional, what they are, are marketing tools of the gas stations who chose to use them. For that reason, the law that applies to gas station displays are essentially the same as any form of marketing. Deceptive marketing practices may not be used to intentionally confuse consumers. Here’s what Florida law demands:
Gas stations that chose to use roadside signs to display fuel prices must show either:
- The undiscounted (credit) price per gallon, or the discounted (cash) price along with the conditions of the discount (e.g., "Cash," "Cash Only," or similar). The discount condition text must be in a font at least half the size of the largest price number, clearly presented next to/above/below the price, and with equal illumination.
So, on that note, to the specific situation outlined in today’s note – that's the line of demarcation as to whether the marketing you encountered was lawful or unlawful. Secondarily, the posted price at the pump must be transparent as well. In other words, if one price was displayed but you were charged a different price – that certainly wouldn’t be acceptable.
Hopefully that’s helpful and potentially instructive. One note, it is possible for local governments to issue additional requirements. For example, Palm Beach County and Broward do have additional ordinances – that's additional food for thought – and also can speak to different displays in different locations even within the same ownership group.