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The Olive Branch, MS, backyard chef cooks three to four times a week on his gas grill. He meticulously tracks what he cooks each week and how long. Fortunately, antitrust law requires a different and more economically sensible result. For example, AmeriGas and Blue Rhino executives spoke frequently in the days leading up to Walmart’s decision to accept the fill reductions, and at one point a frustrated AmeriGas Director of National Accounts suggested to Blue Rhino that it was time for them to issue an ultimatum to Walmart. Blue Rhino’s Vice President of Sales responded by urging AmeriGas to “hang in there” as Blue Rhino continued to negotiate with Walmart.
One can only assume that AmeriGas took comparable steps following the settlement. In light of these considerations and others, scarce Commission resources would have been better spent pursuing other, more worthwhile matters. I voted against the issuance of the Part III complaint against AmeriGas and Blue Rhino last March, and I now dissent from the consent agreement proposed by the Commission. I write briefly to explain my opposition to the majority’s pursuit and now settlement of this novel, unwarranted enforcement action.
https://coinbreakingnews.info/ propane grill tanks contain a net weight of 15lbs of propane. Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business. A closer look at both the Blue Rhino and AmeriGas cylinders revealed the companies disclose right on their labels that they fill only to a net weight of 15 pounds. In the Matter of Ferrellgas Partners, L.P., et al., FTC Docket No. 9360, Complaint (Mar. 27, 2014), available at /system/files/documents/cases/140401amerigascomplaint.pdf.
Spokespersons for both companies admitted the 15-pound amount is a cost-saving measure. But no agency or law regulates the minimum amount of propane that should fill a cylinder. We arranged to have nexAir weigh each of the nine cylinders on its industrial scales. We took into account each cylinder’s tare weight, the weight of the cylinder itself, in making our calculations. “One tank we’ll put in, and we won’t even get through with grilling one full meal out here,” said Rendos.
To compete effectively to serve national retailers, including mass merchandisers such as Walmart, The Home Depot, and Lowe’s, propane exchange tank manufacturers must have access to refurbishing and refilling facilities located throughout the United States. AmeriGas and Blue Rhino are the only manufacturers who can supply exchange tanks to large national retailers, except on a limited basis. You can use our Location Finder to find local retailers who sell AmeriGas propane. Most retail locations have grill tanks available for both sale and exchange, so you can return your old grill tank and get a refilled one in one simple step! The location finder lets you know what services you will find at your local retailer.
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From grilling and tailgating to generators and patio heating, AmeriGas Propane Exchange has you covered! We make it quick, easy to swap out a used tank, or buy a spare tank. With AmeriGas, there is always a convenient place to get propane you can trust, and get on with your day.
February 3, 2021 – A federal judge recently approved a settlement in a class-action lawsuit brought by Paynter Law and co-counsel on behalf of consumers who purchased or exchanged AmeriGas and/or Blue Rhino propane tanks. The alleged conspiracy would establish a relatively straightforward violation of the antitrust laws. In 2008, AmeriGas and Blue Rhino each independently reduced the amount of propane contained in their tanks from 17 pounds to 15 pounds. The fill reductions had the effect of a 13 percent increase in the price of propane because neither AmeriGas nor Blue Rhino implemented a corresponding decrease in price.
Only reason I got an exchange in the first place is my valve was not woking very well. It being my first LP grill I’m wondering what people’s thoughts are on buying their own tanks and getting them filled vs swapping them at Amerigas/Blue Rhino places. A store employee will escort you back to the display and provide you with a fresh, ready-to-grill tank.
Propane Tank FAQs
I go to my local hardware store and it cost $8.50 to fill one and I get more propane. From what I understand Blue Rhino has a special valve so you can’t have it refilled. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. Consumers should also check cylinders for their manufacturing dates or “re-test” dates, a month and year etched into the handle.
And Ferrellgas, L.P., also doing business as Blue Rhino (collectively “Blue Rhino”). I would have voted against this case, even if it had been pursued under the rule of reason because the evidence did not provide a reason to believe that the alleged conduct had an adverse impact on competition in the market for propane exchange tanks. AmeriGas and Blue Rhino are the two largest suppliers of propane exchange tanks in the United States, together controlling approximately 80 percent of the market. No other competitor serves more than nine percent of the market or is capable of serving large national retailers, such as Walmart and Lowe’s. As detailed in the Commission’s Complaint, in 2008, AmeriGas and Blue Rhino faced rapidly increasing input costs.
We continue to believe that pursuing this case was in the public interest. Contrary to Commissioner Ohlhausen’s dissent, the private settlements that Blue Rhino and AmeriGas entered into resulted in very little benefit to consumers. The proposed Orders will benefit consumers by prohibiting conduct that could lead to future agreements on price or other competitive terms. With Blue Rhino, you can exchange any standard empty grill tank for a ready-to-grill propane tank.
In 2008, Blue Rhino and AmeriGas each decided to implement a price increase by reducing the amount of propane in their exchange tanks from 17 pounds to 15 pounds, without a corresponding decrease in the wholesale price. Blue Rhino publicly announced its fill reduction plan on June 25, 2008. AmeriGas publicly announced its fill reduction plan on July 10, 2008. The FTC’s complaint does not allege that Respondents’ initial decision to reduce fill levels to 15 pounds was the result of an agreement between the parties.
Blue Rhino, AmeriGas Final Orders ApprovedPreserving Propane Tank Sector Competition
In November 2020, Defendant AmeriGas agreed to settle the class-action claims. The Court gave its initial approval to the settlement, and the Claims Period opened on January 6, 2021. Se unlawful depends on an unfounded assertion that the parties agreed to keep their prices fixed.
- We get ours filled at a local gas company that actually puts the whole 20 pounds of gas into the tank….and cheaper than Blue Rhino.
- In addition, it prohibits Respondents from coordinating communications to customers or competitors.
- When faced with resistance from Wal-Mart, the two companies secretly agreed to coordinate their negotiations, pressuring the retailer to accept the reduced fill level.
- For a couple bucks extra it’s worth the peace of mind to exchange imho.
Although the argument that AmeriGas and Blue Rhino’s co-filling arrangement offers an efficiency justification for the parties’ concerted action against Walmart has some superficial appeal, it can be dispensed with relatively easily. First, if we are to take seriously the claim that identical propane fill levels are necessary for the efficient operation of AmeriGas’s and Blue Rhino’s businesses, we would expect the parties to have agreed on the initial move from 17-pound to 15-pound tanks. In fact, after a lengthy investigation, the Commission concluded the parties independently reduced the amount of propane contained in their tanks and only colluded in subsequent negotiations with Walmart. Even assuming a valid theory under Section 1, the evidence presented to the Commission failed to convince me that the parties had reached an agreement to do anything.
ALWAYS close the cylinder valve and, if required, seal with a plug, even if the cylinder is empty. We work to advance government policies that protect consumers and promote competition. Find legal resources and guidance to understand your business responsibilities and comply with the law. The Action News 5 Investigators would have never found out — if we hadn’t been grilling burgers with Richard Rendos. Pursuant to FTC policy regarding the term for competition orders, the proposed orders will expire in 20 years.
should you buy bittorrent token technical analysis from Walmart, Blue Rhino and AmeriGas colluded by secretly agreeing that neither would deviate from their proposal to reduce the fill level to Walmart. Exchanged propane tanks are regularly inspected, so you’ll know that the tank you pick up has a lot of life left and has been checked for any issues. What you save in price by refilling, however, comes with a cost –the biggest being convenience. However, there’s likely a Ferrellgas office near your neighborhood, and our easy-to-use location finder makes it easy to find a store near you.
ACTION:
The decision about propane tank exchange vs refill is less about what is the better option, and more a matter of convenience vs price. So, is it cheaper to exchange a propane tank or refill it? I googled and found that Amerigas and Blue Rhino both offer propane cylinder exchange programs at approximately the same price locally. When you are ready to get rid of an unwanted or expired propane tank, it’s important that you do it the right way to keep everyone safe. Propane tanks can’t be thrown away in your regular trash pickup, but we’re here to make disposal easy. Exchanging your old propane tank for a refilled one is the easiest way to dispose of it, but if you need to get rid of it for good- you can also just drop it off at most propane refill or exchange locations.
