Gas stations in Wisconsin sued a gas station that sold gasoline cheaper than them

Amid historical gasoline prices across the country, several stations are suing a competitor for keeping prices significantly low. Newsweek.

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Several competing gas stations in the Woodman's Market area of ​​Waukesh, Wisconsin, have filed a lawsuit against the gas station, alleging that it sells gasoline below cost. Competitors claim that this is a violation of the Wisconsin Fraudulent Sales Act.

Court documents list companies operating nearby BP and Shell gas stations as plaintiffs in the case. Both are seeking $80 in damages. An amount based on the 000 days they claim Woodman's kept prices too low.

As of March 19, the average price of a gallon of gasoline in Wisconsin was about $3,93. Woodman's currently offers gasoline at $3,59 a gallon, based on data obtained by Newsweek from GasBuddy. BP and Shell branches in Waukesha list prices of $3,89-$3,99 per gallon.

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Woodman's, for its part, defended its prices in light of the lawsuit. The station said its prices would compete with Costco, which is 10 km from Pewokee, which the station considers its main competitor. GasBuddy's listings show that Costco sells gasoline in the area for $3,49 a gallon. The company filed a counterclaim seeking dismissal.

"These allegations have no legal or factual basis," attorneys Eric Meyer and Emily Logan Steadman wrote in the motion.

“First, for two days Waukesha Woodman's sold gasoline above the legal price. Second, on 38 other days, Waukesha Woodman's legally set the price of regular unleaded fuel to match/attempt to match Pewukee Costco, which is one of Woodman's competitors. As a result of the foregoing, Woodman's is not subject to this action and the court should grant Woodman's motion for summary judgment and dismiss the gas station's claims in their entirety,” they said.

Woodman's customers have confirmed they went to gas stations because of the lower prices. There were also long queues at the station on March 18, while other gas stations in the area had only a few customers at a time.

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Membership retailers such as Costco and Sam's Club can often charge much lower gas prices at their gas stations compared to standard gas stations in their area. According to Reader's Digest, they may charge such a small fee because about 75 percent of their profits come from subscription fees.

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