Seattle, WA: (Jul-03-07) A class action lawsuit was filed against Jiffy Lube franchises, alleging that the outlets charged extra fees for the disposal of their excess oil. The suit, filed in 2005 by David Stephan of Edmonds, challenged the routine addition of so-called "Environmental Surcharges," "Environmental Fees," or "Shop Fees" to customer oil change bills. The fees of anywhere from 75 cents to $2.25 were tied to the disposal of customers' used oil. Stephan claimed the wording implied the fee was some type of government surcharge. In reality, oil change facilities are not required to charge a fee by any federal, state or local government agency. The franchise owner denied the allegations, though he agreed to settle the dispute out of court.
In a settlement reached, the franchise owner has set aside $350,000 to refund customers who were charged the oil change fee. The settlement will affect those who paid the surcharge between November 1, 2001, and April 27, of 2006. [KOMO TV NEWS: OIL DISPOSAL FEE]