Unfair Sales Act

Listen to this article

7^th Circuit Court of Appeals

Case Name: Pit Row, Inc. v. Costco Wholesale Corporation

Case No.: 23-1800

Officials: Wood, Lee, and Pryor, Circuit Judges.

Focus:  Unfair Sales Act

Twelve gas stations located in the Green Bay, Wisconsin area alleged that Costco Wholesale Corporation violated a Wisconsin law prohibiting the sale of gasoline below a statutorily defined cost. The plaintiffs sought an injunction to prohibit Costco from selling gasoline below this level and damages exceeding half a million dollars each. Costco argued that it adjusted its prices to match a competitor’s price, which the statute permits, and that the plaintiffs failed to establish the causal element of the statutory claim.

Initially heard in the United States District Court for the Eastern District of Wisconsin, the court ruled in favor of Costco, granting summary judgment. The plaintiffs appealed this decision, contesting both the summary judgment and an evidentiary ruling made earlier in the case.

The Seventh Circuit upheld the lower court’s decision. The court determined that Costco was immune from liability under the “meeting competition” exception in the Wisconsin law for 238 of the 256 days in question. Additionally, for the remaining 18 days, the court found that the plaintiffs did not demonstrate that they suffered or were threatened with injury as a result of Costco’s actions. Furthermore, the court affirmed the lower court’s refusal to allow the plaintiffs to supplement their expert report.

Affirmed.

Decided 04/30/24

Full Text