The BBB says its concerned about gasoline-hedging company MyGallons.com and its ability to live up to the advertising claims on its website. A spokesperson for the BBB tells us that the biggest "red flag" they've discovered is that MyGallons claimed (in their press release) to have partnered with US Bank. However, when the BBB called US Bank to confirm this, they found out that it wasn't true. US Bank had discussed the opportunity with MyGallons, but had declined. According to the BBB, despite the fact that they have no contractual agreements in place to process transactions, MyGallons is still signing up new customers.
The BBB has added this warning to MyGallons' reliability report.
The Bureau is concerned that the company's advertising contains a material omission of fact. Specifically, while the website proclaims that any gas station in the US that accepts credit cards will accept the My Gallons Card, however the company has informed the Bureau that no contractual agreements to process the card have been made as yet.
Here's the statement from MyGallons.com's press release:
In addition to significant savings, MyGallons offers its members convenience and freedom as the gas redemption program uses the Voyager fleet network, owned by US Bank, which is accepted at over 95% of gas stations nationwide.
MyGallons.com's, spokesperson, Greg Salsburg, told Consumerist that their partnership with US Bank was just for a "pilot program" and that they are currently in negotiations with another company. He said they expect to have a big announcement next week about their new transaction partner. He also said MyGallons is "comfortable and confident" that the deal will go through, and that current customers will not be affected.
MyGallons LLC [BBB]
MyGallons Provides Americans With a Solution To Fight Rising Gas Prices (Press Release) [Yahoo!]