Westchester Legislators Approve Revised Law On Gasoline Pricing Signs
A revised law would fine gas station owners $1,000 per day if both cash and credit/debit prices are not displayed.
The Westchester County Board of Legislators unanimously passed legislation on Tuesday that addresses deceptive trade practices in gasoline pricing signs.
The legislation was initially introduced by county legislator Michael Kaplowitz (D-Somers) due to the absence of gasoline signs indicating higher prices for payments made by debit or credit cards.
The revised law would specifically affect gas station owners prohibiting them from misleading the public on those prices. Instead of displaying just the visible from the road cash price, and then have different credit prices visible when someone drives up to the pump, gas station owners would have to prominently display both.
If they fail to display the difference in prices, they could be fined up to $1,000 for each day they're in violation.
When the law is signed by county executive Rob Astorino, the new bill will take effect in six months.
"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 the Environment and 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."
Kaplowitz said last month that he believes the law would benefit customers and prices will come down as a result of competition among gas stations. He said the cost of the law is minimum, as gas station owners would only have to purchase signs, if they don't have them. They would have 60 days from the day the law is passed to purchase those signs.
Throughout Westchester County, 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, Kaplowitz 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," said Autobahn/Citgo Yorktown owner Ron Guarino, who supported Kaplowitz during his October press conference.
Watch the embedded YouTube video above of Kaplowitz's press conference in October. The video was provided by the Westchester County Board of Legislators.
Dina Sciortino
10:38 am on Thursday, December 1, 2011
When did they start charging two different prices for gas? I don't remember ever hearing about that until maybe this past summer. Have they always charged different prices, and just not had signs? Is that why I haven't noticed?
Plamena Pesheva
11:44 am on Thursday, December 1, 2011
That's a great question, Dina. The difference in prices for cash and credit became more prevalent in the last year or so as gas prices went up. Many gas stations would show the cash prices on their signs as you drive by, but only when you get to the pump you would see the credit price.
MSS
12:37 pm on Thursday, December 1, 2011
This was a prevalent practice in the 70s and 80s and as gas stabilized and competition grew (i.e. people started only going to stations that charged the same for both) most stations stopped charging separate prices. However with the rise in the past two years, this has come back into "fashion" again. I say frequest the places that charge the same.
I was about to run out and I pulled into a station one rainy night last week in Armonk, and not only was it $4.45 a gallon (extortion if you ask me), when I got to the pump it was actually $4.55 and that was for regular. I put in $10 to get home and filled up the next day.
ASleepyBoy
12:46 pm on Thursday, December 1, 2011
I think people should all start putting in about 50 cents worth of gas and pay by credit card and then fill up by paying with cash. Gas stations will quickly stop charging more for credit cards. Or they may just impose a minimum amount for credit cards........
Jason Goldberg
1:51 pm on Thursday, December 1, 2011
This started taking off again recently, following the passing and implementation of the Durbin Amendment to the Dodd-Frank Consumer Protection Act. One of the items in the amendment allowed for merchants to give discounts at the point of sale to those who pay with cash or debit cards. Previously, Visa and MasterCard banned this practice in their merchant agreements. So much for consumer protection! I'm glad that the County BoL passed this law. Most of the gas merchants in our area engaged in this practice are charging far more than their cost of processing a credit card transaction -- they are profiting on it!
ArTDecoPlayLand
2:53 pm on Thursday, December 1, 2011
Wrong, most credit cards such as American Express have a 3% merchant transaction fee. The difference in price is about 7 cents a gallon from all the stations I have seen, which is a lot less than 3% of the transaction. A merchant has every right to pass on the extortionist costs of the credit card companies.
Blue
3:17 pm on Thursday, December 1, 2011
I'm seeing a 10 cent diff in my area and since Amex is the highest at 3% then I think some station owners are taking advantage of it. One station won't take Amex on sales over $40
ArTDecoPlayLand
3:49 pm on Thursday, December 1, 2011
I live in New Rochelle and I have yet to see a station in either New Rochelle or Larchmont where the difference is more than 7 cents. I also work on Long Island where it is typically 7 cents. I use AMEX on everything and have never been turned away. You must live in a different area where the rules are a little stricter.
Michael Woyton
4:22 pm on Thursday, December 1, 2011
I use my debit card to buy groceries and get $20 cash. There's no ATM fee. Then I use the cash to pay for the gas.
ArTDecoPlayLand
4:24 pm on Thursday, December 1, 2011
That's the best way to go.
Dina Sciortino
4:35 pm on Thursday, December 1, 2011
Fantastic discussion everyone, thanks for contributing!
George Datino
5:58 pm on Thursday, December 1, 2011
The difference in the Cash and Credit pricing at the pump has to do with how gas stations pay for their gasoline from the refiner. From what I can remember, the oil company collects the money from the card and the gas station is paid back in gas but not at an exact match. The gas station ends up with less gasoline then it pumped out for those purchases. It used to equate to a 4 cents difference. I guess now it equates to 7 cents.
newrochellesouth
10:18 pm on Thursday, December 1, 2011
I haven't been to the Sunoco at the corner of Huguenot and Echo since they started charging extra for using your debit card. I used to always buy my gas there.
Now I go to the corner of Pelhamdale Road and Shore Road. Great full service, great prices, and no extra charges! Sometime, if I have Stop and Shop points, I will go to the new Shell station on Pelham Road. They charge the same price, but without your points the gas is not cheap.
Nelson Salazar
7:44 am on Friday, December 2, 2011
There are costs associated with cash that are often not discussed. A business that handles a lot of cash has additional costs/risks of theft, security and errors in cash handling. In addition most (all?) banks today charge businesses a fee for depositing cash that often comes close or matches those fees charged by credit card companies. The price difference I've often seen in my area for using a credit card is 10 cents per gallon. I do think that gas stations are profiting from this practice.
sam hedrick
3:04 pm on Friday, December 2, 2011
I'm in Lawrence , Kansas right now. I really don't care about how the prices are posted. I care about the price. Here gas is $3.03 a gallon. Cash and credit. Give New Yorkers a break somehow.
Michael Woyton
3:49 pm on Friday, December 2, 2011
Can you bring me back some $3.03/gallon gas? Thanks in advance.
Francis T McVetty
9:55 am on Saturday, December 3, 2011
Michael Woyton, we might get a price reduction if the President and his administration would let US drill for OUR own oil!!!! The numskull won't even let a pipeline be built from Canada to Texas. At least buying oil from Canada is better than buying oil from Saudi Arabia, Russia, and Venezuela. None of these countries are our friends and we are pumping in billions into their coffers.Remember way back when the president said it would be ok if the gas prices rose to $5 a gallon. Well he looks like he is getting that, isn't he?
Sharon Deer
3:16 pm on Saturday, December 3, 2011
It's great to see a consumer protection law go into effect here.