A Federal Court decision delivers a blow to chain grocery stores in Colorado offering below–cost gas to consumers.
The buy groceries/get gas incentive program at King Soopers and City Market was declared illegal Tuesday and is no more.
A Federal District Court Judge in Denver ruled in favor of the lawsuit brought forth by two Montrose companies, Parish Oil and the now out of business Ray Moore Gas and Tire, saying the program violates Colorado's law prohibiting the sale of gas below cost.
The companies received a $1.4M settlement and attorneys representing the companies tell 11 News the decision is a statement for local retailers competing against chain outlets.
Under the King Soopers/City Market program, customers will still be able to qualify for a three-cent discount by using their Soopers Card, however, the extra seven-cent discount for buying a $100 in groceries within 30 days is no longer legal.
A King Soopers spokesman says the company is disappointed with the decision and is planning an appeal, but the customers who have qualified for the seven-cent discount will be able to get a five percent grocery discount before December 15.