Costco is attempting to settle its portion of a lawsuit aimed at various gasoline retailers across the country accused of selling what's known as "hot gas."
The lawsuit claims retailers may have deceived customers into thinking they were getting better quality gas than they actually received.
If you buy your gas at Costco, chances are you've gotten something in the mail or an e-mail from Costco notifying you of a class-action lawsuit against Costco and other gas retailers.
The original lawsuit, filed by a consumer advocacy group, revolves around "hot gas" - gas that comes out of the pump at a temperature greater than 60-degrees Fahrenheit. The concern is that as gas heats up, it expands. Though it expands physically, its energy content does not increase.
"Now today you do receive a gallon when you pump fuel," said Kern Co. Weights and Measures Deputy Director Manuel Villicana. "But because it's expanded, you're going to get less energy out of it, less BTUs (British Thermal Units), so you're gonna go less far."
Though on their website Costco has denied all liability, the company has still agreed to take action to settle this case.
"There were a lot of companies involved bug Costco was one that agreed to settle and install temperature-compensation retail dispensers at its locations," said Vallicana.
Those temperature-compensation retail dispensers are common in Canada, but rarely seen in the U.S., outside of Hawaii.
They work by gauging the temperature of gas and lowering the price relative to the amount it exceeds 60-degrees Fahrenheit.
But Villicana points out one problem with temperature compensation devices - they may not truly benefit consumers in the end.
"I think it comes down to the cost benefit to the consumer," he says. "How much will it really save them?"
He says the lack of an answer to that question has topped most U.S. states from requiring these specialized dispensers in the first place.
"In the long run the consumer will have to pay for this in some fashion," says Villicana.
A U.S. District Court in Kansas City, KS is going to either approve or deny the settlement terms in March.
If you received a notice from Costco, you will automatically be included in the class of people suing gas retailers. However, no money will be awarded to class members.
If you decide not to opt out of the lawsuit, you won't be able to sue gas retailers in the future on any grounds contained in the first lawsuit.
If you do want to opt out of the lawsuit, go to our homepage and click on "Hot Links," then scroll down to item number six on the page you are directed to.
