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MINIMUM MARK-UP LAW SHOT DOWN
Thursday, February 12th, 2009 -- 12:26 pm
Posted by Riley Hebert-News Director
A Wisconsin law requiring gas station owners to mark gasoline up 9% has been ruled unconstitutional.
The ruling by U.S. District Court Chief Judge Rudolph Randa means the state can no longer enforce its minimum markup law, which has been on the books since 1939.
A magistrate judge ruled the state law was unconstitutional in 2007 in a dispute between Flying J Inc. and another gas station, but that ruling did not enjoin the state from enforcing the law. Later that year, the state Department of Agriculture, Trade and Consumer Protection brought an enforcement action against Flying J for failing to comply with the markup law.
Flying J then sued the state, arguing that the earlier ruling meant the state could not enforce the law. On Wednesday, Randa agreed with Flying J and enjoined the state from enforcing the law.
Randa said the law is unconstitutional because it violates the federal Sherman Act, which bars the restraint of trade between states.
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