A class action lawsuit was filed against BP by a group of unhappy and disgruntle ARCO, BP and AmPm franchise owners. The lawsuit is entitled Green Desert Oil Group, Inc., et al. v. BP West Coast Products, LLC, et al and revolves around claims that BP ordered all franchisees to install a defective point-of-sale system that decreased profits and lowered overall income of the owners. The BP Gas Station Franchisee Class Action Lawsuit also claims that BP artificially increased gas prices in order to deliver more gas when gas prices are high. BP is in a heap of trouble but denies all wrong doing. The case will be under the jurisdiction of the United States Northern District Court of California. The harm done according to the official lawsuit is as follow:
“(1) Manipulating gas supplies and prices, so as to maximize the wholesale price of gasoline. “For example, when oil future prices are trending down (signifying lower prices in the days ahead), BP Defendants deliver more gas at the higher current price; and when oil future prices are trending up (signifying higher prices ahead), BP Defendants deliver less gas in order to wait to deliver gas when prices rise later,” the class action lawsuit states. Furthermore, it adds, BP manipulates gas pricing “by delivering gas before or after price increases or decreases that serve to increase the sales price charged to franchisees.”
(2) Forcing franchise owners install a new centralized POS system, developed and installed by co-defendant Retalix LTD, which is defective, resulting in substantial damages to franchise owners through lost operation time, lost revenue, lost or inaccurate inventory, lost receivables and cash, and increased operating costs and burdens;
(3) BP’s direct control of and/or pricing by third-party vendors, which results in unreasonable increased costs to franchisees;
(4) BP’s policy of forcing sale of items and collection of fees for which Plaintiffs receive no compensation;
(5) BP’s unreasonable and untimely approvals and or denials to buy or sell franchise locations and unreasonable restrictions placed on lenders, which lowers market value of the franchises; and
(6) BP’s failure to properly spend all collected amounts for advertising and promotion.”
A complete copy of the BP Franchisee Class Action Lawsuit can be found here.
