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Are You Getting Duped on Your Propane Exchange?

Reported by: Jenn Strathman
Email: strathman@nbcactionnews.com
Last Update: 6/24/2009 12:12 pm
KANSAS CITY, Mo. - Firing up the grill is a summertime ritual for Charles Bauer.

"It's the flavor you get out of the food," Bauer said.

From burgers to dogs, Bauer smokes them to perfection. That good eating is not lasting as long. Flames across the United States are fizzling out faster.

"I think they are ripping us off," Bauer said.

When Bauer exchanged his propane tank, he thought he was getting a full one. Bauer is concerned because he says he saw a 20 pound propane exchange on many of the cylinder exchange signs in Kansas and he didn't realize you don't even get a full 20 pound tank until Call For Action alerted him.

There are safety devices on tanks so you can't overfill them and cause an explosion. The State of Missouri says consumers should expect most full tanks to be around 18 or 18.5 pounds. However, most stores with propane exchange programs only sell a maximum of 17 pounds. These days, though, 17 pound tanks are hard to find. Bauer got less than that, and that's why he filed a complaint with the State of Kansas.

"The price remains the same, but the volume changes," Bauer said.

Inspectors with the Missouri Department of Agriculture Weights & Measures Division say they saw propane volume drop when gas prices spiked last summer.

"We noticed that some of the tanks were being changed from 17 pound to 15 pound as we saw the higher prices," Weights & Measures Division Director Ron Hayes said.

Class Action Lawsuits Filed

It's a switch that is prompting class action lawsuits. In California, consumers are suing AmeriGas and Overland Park-based Ferrellgas. Ferrell operates the Blue Rhino propane exchange.

Just last week, a Jackson County, Mo., woman also sued Ferrellgas alleging the company "implemented a price increase without disclosing it" since you get less for your money. Click Here to read the lawsuit.

A lawsuit has also been filed in Kansas where Ferrellgas is located. Attorneys for the Class Action lawsuit say they filed a motion asking that the cases filed around the country be consolidated in federal court in Kansas since that's the headquarters for Ferrellgas. It's a process that is expected to take several months.

A Ferrellgas spokesman told Call For Action he believes the claims in these suits are without merit and the company will defend itself vigorously.

AmeriGas says it's updating signs and adding banners at stores to make consumers aware of the shrinking size. You can read their full, unedited statement at the end of this story. It's also offering a $2.50 rebate to consumers who have a proof-of-purchase. Only one rebate per household is allowed and the program ends at the end of the year. One class action attorney didn't know about it, and the Missouri Attorney involved in the case said the rebate program is being examined but seems to support the problem.

Missouri Law says you have to make the price and weight clear to the consumer.

But our hidden camera investigation of 20 stores found that's not happening, even though the State says its Weights & Measures inspectors are watching.

"We wanted to get everyone in compliance as fast as possible," Hayes said.

But how fast is fast? Missouri has known about this since the fall, and sent a letter to the Missouri Propane Gas Association in November alerting them of the law.  We still found 75 percent of the stores are not in compliance.

Hayes responded, "Wow. I would think maybe 50 percent because our inspectors should be out there checking that, but we are little behind on inspections this year."

Many Exchanges Mislabeled

Looking at this label, the net contents are hard to see...but it's there (Click to the next image to see a close-up)
Looking at this label, the net contents are hard to see...but it's there (Click to the next image to see a close-up)
Inspectors typically spot-check stores every 12 or 13 months. Our checks found all kinds of mislabeling from no price and no weight to just no weight or just no price. This mislabeling leaves consumers walking inside the store to figure out the price.

Click on the slideshow to see how several area retailers labeled their propane exchange cages.

We showed Hayes pictures of the cages in the Kansas City area. We had him take a look at the various labeling.

He suspected a problem while looking at one snapshot and mentioned that there was no weight label. However, we pointed out that there is a label -- Hayes just missed it which shows how easy it is for a consumer to miss the weight disclaimer.

Only 25 percent of the stores didn't miss the mark, and actually followed the law. The Lowes at Vivion and North Oak Trafficway uses two stickers on every cage to alert customers to the shrinking size.

However, waiting customer Hance Pierson still didn’t see it until we told him.

"I almost feel like they're cheating me," Pierson said.

The good news, you won’t always get cheated. There’s still 17 pound tanks in circulation; you just have to know where to look. Check out our list of 20 stores and the results we found.

At Lowes, we spotted several dusty 17 pound tanks and told Pierson. He was ready to drive off with a 15 pound tank.

"You intervened and told me to be sure to get a 17 pound cylinder and I did and he gave me one."

That resulted in an extra 2 pounds of propane for Pierson.

"Thank you," Pierson said.

There is no alert at the Midtown Home Depot. We brought an empty 17 pound tank, and the store exchanged it with a 15 pound tank.

Our undercover producer said, "Now this one says 15 pounds that one is 17 pounds. Do you have any 17ers?"

The clerk looked puzzled and said, "Wow. No, everything is 15. It looks like they changed their sizing because that's the exact same AmeriGas can. Same size. They just don't fill it as much it seems."

So our undercover producer asked, "Do I get a discount for giving a 17 and getting a 15?"

The clerk answered, "No."


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