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Nickelless
Administrator
USA
5580 Posts |
 Posted - 02/12/2009 : 22:55:07
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A federal judge has declared Wisconsin's 70-year-old minimum markup on gas unconstitutional, a decision that might save drivers money at the pump.
The state must stop enforcing the mandatory markup on gas because it illegally restricts trade, said Rudolph T. Randa, chief judge of the Eastern District of Wisconsin.
Proponents of a similar law in Minnesota have argued that, without the rule, large retailers would put small stations out of business by cutting prices, and then turn around and raise prices.
Some Minnesota legislators have tried in the past to repeal the requirement that stations charge at least 8 cents a gallon above the wholesale price, arguing that the law inflates gas prices. It's unclear whether the decision in the Wisconsin case will renew efforts to have Minnesota's law repealed.
Lance Klatt, executive director of the Minnesota Service Station Association, said his organization supports the Minnesota law because it creates more outlets for competition. He pointed to details of the state's law, enacted in 2001, that still allow retailers to offer discounts to consumers.
"Our law is written to try to avoid unconstitutionality," he said. "It gives more opportunities for coupons and other promotions that give consumers a break."
The minimum markup law has been a point of contention for years in Wisconsin. Passed in 1939, the law prohibits retailers from selling products for less than they paid. Gas stations must tack on 6 percent over what they paid or 9.18 percent over the average wholesale price, whichever is higher.
Judge Randa's decision came Wednesday in a lawsuit filed by Flying J, a Utah company that runs travel plazas in Black River Falls and Oak Creek. The company's attorney, Jonathan Dibble, said the ruling should increase competition and drive down gas prices.
"The state has been on autopilot since this passed," Dibble said. "The citizens of Wisconsin have paid hundreds of millions of dollars more than they should have over the years."
Minnesota's law has already been the subject of a court battle over its constitutionality. In 2006, the state Commerce Department fined gas station chain Midwest Oil of Minnesota $140,000 for selling gas below the legal minimum price. The state Court of Appeals upheld the fine in 2007.
"It protects the independent guy, the small guy, and the consumers understand that," Klatt said.
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fb101
Administrator
USA
2856 Posts |
Posted - 02/13/2009 : 05:27:34
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When I heard how the feds are cuddling up to the unions, the first thing I thought was "More federal tax money routed to the DNC coffers", and the second was, "now they're going to start getting rid of the small business owners".
yeah.
Buckle up folks, the ride's going to be bumpier than we thought. |
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Minnesota gas law ruled unconstitutional
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