PENNSYLVANIA ASSOCIATION OF WEIGHTS AND MEASURES
P O BOX 2511
PAWM TECH ALERT
Subject: Multi-Tier Pricing Problems Surface at the Pump
To: State and Local Inspectors of Weights and Measures
From: Gerald R. Buckley, President, PAWM
Just what is “multi-tier pricing”? It can be described plainly and simply as offering a single motor fuel product at two prices at the same location. Back in the seventies, the big problems were “cash & credit” sales. After literally years of work at the National Conference on Weights and Measures (NCWM) and at the various state and regional conferences, the issue was resolved, or so we thought.
What played a large part in the resolution of this dilemma was the transition from mechanical analog devices to devices with full electronic computing capabilities. The NCWM then added and revised sections of the LMD code in Handbook-44 that defined and restricted multi-tier pricing at retail.
First we had devices with customer operated cash/credit buttons that displayed whichever sale price the customer selected. Although we never learned exactly why, the retail fuel industry grew tired of the two button scenario and fell back to the single price for cash or credit. The cost of installing and maintaining these additional features may have played a roll in this move.
During the past two or three years, as we have observed the marketing wars increase in intensity, the retail industry has come up with some very unique marketing tools and gimmicks, not all of which are legal. First we saw the “wacky Wednesday” or ‘senior citizen” day promotions where stations knocked off a few cents per gallon on chosen days. Some complied with the law, many did not. We often found attendants refiguring sales at the console with the aid of a handheld calculator which is illegal and many times not very accurate.
Where are we today on the multi-tier pricing issue? While Handbook-44 seems to be fairly clear on this issue for both device manufacturers and users, confusion still reigns in the marketplace due to the lack of uniform enforcement and interpretation. Following is a list of the pertinent sections of HB-44 that appear to apply to multi-tier pricing.
General Code G-UR.1.1.
Liquid Measuring Device Code S.1.6.4.
“ “ “ “ S.1.6.5.
“ “ “ “ S.1.6.5.4.
MULTI-TIER PRICING
Liquid Measuring Device Code UR.3.1.
“ “ “ “ UR.3.2.
“ “ “ “ UR.3.3.
“ “ “ “ UR.3.5.
Appendix D-Definitions, Contract Sales
Several methods have been suggested whereby a firm might offer multi-tier pricing and still comply with the law.
(1) Utilize dispensers that have the two price option via a button selection. This allows the consumer to view and select the price he or she will pay.
(2) Utilize separate or dedicated dispensers While this requires very good signage and can be confusing to the uninitiated consumer, it does allow them to pull to the island or dispenser that offers the price they desire.
(3) The last possibility might be “contract sales” where the buyer and seller enter into
a written contract or agreement that spells out the pricing conditions of the sale. With today’s software capabilities, that might entail the swiping of a company card that would direct the dispenser to display the sale price and generate a receipt documenting that price.
Ultimately, it might serve everyone well if all interested parties sat down in the same room and discussed the various options now available within the law and/or work toward refining present laws and regulations to accommodate a true contract sale that is equitable to both buyer and seller.
PAWM: PROVIDING EQUITY IN THE MARKETPLACE
**** 
