Buyer beware in Iowa. Our readers are well aware that the FTC is currently in the process of holding workshops and gathering information to determine whether and how to update its Green Guides. The focus of the review has been whether there are current generation environmental claims (e.g., "sustainable") that lack common meaning and can serve to confuse or perhaps mislead consumers. Many hope the revisions will provide clarity on the FTC's views of substantiation requirements for more modern environmental claims. Then again, there is still good old-fashioned fraud. But the Iowa Attorney General is on the trail.
An Iowa judge issued a temporary restraining order prohibiting two defendants from selling gasoline consisting of 85% ethanol as a higher grade and higher cost fuel. The consumer protection lawsuit, filed by the Iowa Attorney General’s office, requests a permanent injunction, consumer reimbursement, and civil penalties up to $40,000 per violation. A hearing is set for September 22 in Black Hawk County.
The lawsuit named the owner of several convenience stores and gas stations as the defendant. Jerry Fratzke, owner of Pronto Markets, allegedly bought at least 2,500 gallons of E85 ethanol blended fuel, then sold it as either unleaded regular gas, or 10% ethanol-enhanced fuel. According to the pleadings filed in conjunction with the suit, fuel retailers can buy E85 blended gasoline at a substantial discount due to tax breaks and other incentives in an effort to promote environmentally-friendly gasoline for flex-fuel automobiles. Often, E85 fuel costs retailers 30 to 40 cents less than traditional regular unleaded gasoline.
Unlike E10, E85 fuel contains 85% ethanol and 15% petroleum, and can only be used in engines specifically designed or converted for high alcohol blends of fuel. Automobiles that can run on E85 are usually referred to as Flex Fuel or Alternative Fuel Vehicles. Experts state that E85 fuel should never be used in conventional gas-powered vehicles.
The Attorney General’s office filed the suit after a representative from the Weights and Measures Bureau of the Iowa Department of Agriculture and Land Stewardship was informed that Pronto Markets purchased the E85 fuels, but did not have an E85 storage tank or marked fuel pump at the stations in question. The lawsuit alleges that Fratzke stored the E85 fuel in tanks that served unleaded gasoline pumps and did not maintain a separate tank for E85. A representative from the Weights and Measures Bureau stated that no consumer complaints have been filed to date, but expects there could be some after news of the lawsuit circulates.
