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Services of Mood Data Central <br /> #7 <br /> PAGE 4 <br /> 31ST STORY of Level 1 printed in FULL format. <br /> Proprietary to the United Press International t990 <br /> October 24, 1990, Wednesday, BC cycle <br /> SECTION: Financial <br /> LENGTH: 319 words <br /> HEADLINE: Utah files complaint against. Flying J <br /> DATELINE: SALT LAKE CITY <br /> KEYWORD: RBN-FLYINGJ <br /> BODY: <br /> The state Attorney General's Office filed a civil complaint Wednesday against <br /> Flying J Petroleums Inc. , alleging the company violated the Utah Motor Fuel <br /> Marketing Act. <br /> The company, headquartered in Brigham City, Utah, operates an oil refinery <br /> in North Salt Lake and retail gasoline and diesel fuel outlets in Utah and <br /> neighboring states. <br /> The complaint alleges Flying J sold gasoline and diesel fuel below cost on <br /> a number of days in June through one of its retail outlets in Ogden, Utah. <br /> The sales hurt the company's competitors by forcing them to choose between <br /> losing money by also selling below cost, or continuing to sell at or above cost <br /> and losing revenues from reduced sales, state prosecuors claimed. <br /> The complaint contends Flying J's sales would eventually force its <br /> competitors to abandon the retail gasoline and diesel fuel business, especially <br /> small competitors that cannot use profit from sales in other markets to offset <br /> losses incurred from meeting Flying J's below cost sales. <br /> " Flying J's below-cost sales will force small retailers, not affiliated <br /> with any company operating an oil refinery, out of the retail gasoline and motor <br /> fuel industry before larger retailers or retailers affiliated with a refinery <br /> are forced from the marketplace, " the complaint said. <br /> The pleading alleges Flying J's pricing would concentrate market share in <br /> fewer, larger retail gasoline operations and create an oligopoly or monopoly in <br /> gasoline retailing, reduce or eliminate competition and ultimately lead to <br /> substantially higher retail prices. <br /> The state seeks an injunction against further below-cost sales and a fine of <br /> not more than $5,000 for each retail sale of fuel below cost. <br /> "Competition is what keeps prices of any product at their lowest <br /> sustainable level, " said Arthur Strong, head of the Fair Business Enforcement <br /> Unit--wi-th—the Attorney-General's Office. <br /> LExis NExis LExis NExis <br />