Michigan consumers are looking to save money at the gas pump, and gas station owners are offering many incentives to keep their customers coming back. The Michigan Department of Agriculture (MDA) is looking out to make sure these incentive programs are not misleading to consumers, or worse yet, fraudulent.

One of MDA’s top priorities is protecting consumers’ pocketbooks to ensure consumers get what they pay for at the pump, and that businesses have a fair opportunity to compete. MDA’s Weights and Measures Program activities support an estimated $170 billion in Michigan commerce, while protecting consumers, and maintaining a competitive balance that is critical to growing the state’s economy.

In Michigan, state law allows the use of coupons or discounts, but they can’t be misleading and must comply with the law. This means consumers must get the advertised price per gallon, and that the price per gallon is the same at the pump, on the signage, and on the receipt.

The majority of Michigan gasoline retailers have found ways to provide discounts to their consumers in compliance with this law, P.A. 283 of 1964, as amended, the Weights and Measures Act, and uniform liquid-measuring device specifications contained in the National Institute of Standards and Technology Handbook 44, which the Act incorporates by reference.

Recently, some Michigan gasoline retailers offered promotions giving consumers a discount off the price per gallon of gasoline based on the number of gallons purchased. With this type of discount promotion, consumers were unable to see the discounted price per gallon at the pump, select the discounted price on the pump, nor receive a printed receipt reflecting the discounted price per gallon.

As a result, consumers may not always receive the full discount amount since fractional gallon purchases were not considered. For example, a consumer purchasing 4.5 gallons with a 10-cent per gallon discount would only receive 40 cents off - not 45 cents - if the unit price had been properly set and calculated.

MDA staff are working cooperatively with the gas station retailers to find alternate ways to provide promotional discounts on gas purchases - - including those modeled after other retailers.

MDA’s Weights and Measures Program has the statutory responsibility to ensure there is full and accurate gas pricing disclosure and ensure consumers receive the price to which they are entitled. Neither Michigan law nor MDA want to prevent consumers from getting a discount. There are many ways for retailers to provide discounts. Michigan gas station retailers may continue to offer price per gallon discounts on fuel purchases as long as the unit price and discounts are clearly indicated to the consumer at various locations and are free to extend those promotions as it sees fit - as long as it conducted in accordance with Michigan law.

Michigan consumers who have concerns about inferior and adulterated gasoline, or any advertisement, purchase, or transaction based on weight, measure, or count are encouraged to call 1-800-MDA-FUEL (1-800-632-3835) to register a complaint.