MrConsumer loves a bargain and to find an offer for a $9.99 oil change these days is unheard of. But that’s what Monro, an East coast auto service chain, advertised. They also run nine other auto service chains in the Eastern half of the country and in California. They are Mr. Tire, Tread Quarters, Ken Towery’s, TireChoice, AutoTire, Tire Warehouse, Tire Barn, TiresNow, and CarX.
Enlarged for better readability*MOUSE PRINT:
That unreadable fine print says there is an additional charge (where permitted) of $2.90 for an oil “filter and/or waste recycling fee and a 9.99% service charge which represent shop supply and equipment costs and profits.”
So already, the $9.99 price is out the window. The $2.90 waste disposal fee is not required by the state, and retailers are required to take back up to two gallons of used oil sold by them per day per person at no charge. A service shop like Monro is not considered a “retailer” according to the state. And then there is that 9.99% shop fee.
But is it really only 9.99% for this oil change?
*MOUSE PRINT:
Here is a condensed version of an estimate from a Monro location using the above $9.99 coupon:
In this case, the 9.99% shop fee charge totals $3.29! Where did that come from? Shouldn’t it be about a dollar on a $9.99 oil change? What Monro does is charge the customer 9.99% on the regular price of the oil change. In this case, that is $25 plus $4.99 for the oil filter plus the $2.90 disposal fee, totaling $32.89. Ten percent of that is $3.29. This is similar to a misguided retailer trying to charge sales tax on the regular price of an item rather than on the discounted price when it is on sale.
We contacted Monro’s chief marketing officer trying to determine if this was a computer programming error or a deliberate and misleading way to calculate the 9.99% shop fee. Her response sidestepped the question:
“We disclose the inclusion of a disposal fee and a service charge fee based on the retail price in all marketing materials.”
We also questioned whether the sales tax was being calculated correctly by basing it on not only the oil change, but also on the environmental/disposal fee and the shop fee. The company expressed confidence in its calculation. However, Massachusetts law only provides for assessment of the 6.25 percent sales tax on tangible goods, and therefore not on services, shop and recycling fees, and service plans, particularly when they are itemized separately on the bill. While Monro did only charge tax on the net price of the oil change excluding the $2 labor charge, they did tax the recycling fee and the inflated shop fee.
It is misleading to customers to advertise what looks like a complete price when in fact the company has additional required fees in order to purchase the advertised service, particularly when clear disclosure of those charges is not made.
