I 
108TH CONGRESS 
1ST SESSION H. R. 1039
To prohibit certain discriminatory pricing policies in wholesale motor fuel 
sales, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 27, 2003
Mr. THOMPSON of California (for himself, Ms. WOOLSEY, Mrs. CAPPS, Mr. 
CASE, Mr. MCINTYRE, Mr. BERMAN, Mr. DEFAZIO, Ms. CARSON of Indi-
ana, Mr. FILNER, Mr. WEINER, Mrs. DAVIS of California, Mr. LIPINSKI, 
Ms. NORTON, Mrs. NAPOLITANO, Mr. MCGOVERN, Mr. KUCINICH, Mr. 
GUTIERREZ, Mr. HONDA, Ms. BERKLEY, and Mr. CAPUANO) introduced 
the following bill; which was referred to the Committee on Energy and 
Commerce 
A BILL 
To prohibit certain discriminatory pricing policies in 
wholesale motor fuel sales, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Wholesale Motor Fuel 
Fairness and Competition Restoration Act’’. 
SEC. 2. FINDINGS. 
The Congress finds that—
(1) both wholesale and retail motor fuel prices 
are the result of a number of complex factors, in-
cluding those related to supply, refining, consumer 
demand, and oil company cost, pricing, and mar-
keting practices; 
(2) certain cost, pricing, and marketing prac-
tices employed by the oil companies are unfair and 
anticompetitive, and contribute to the unjustified 
price of retail motor fuel charged the American con-
sumer; 
(3) among the unfair and anticompetitive oil 
company practices are price zoning, redlining, dis-
criminatory wholesale motor fuel pricing, and a com-
plex system of cost allocation that hides the factors 
on which wholesale costs are based; 
(4) the oil companies’ practice known as price 
zoning is one by which prices for motor fuel are set 
solely because of the retail station’s geographic loca-
tion unrelated to cost-of-business factors; 
(5) price zoning allows an oil company to artifi-
cially increase or depress retail motor fuel prices in 
order to secure an unfair market advantage against 
competitors; 
(6) the oil companies engage in a practice 
known as redlining, whereby a refiner refuses to sell
motor fuel to distributors or particular geographic 
markets; 
(7) redlining allows an oil company to force 
concessions from a distributor and affords the com-
pany the opportunity to exert undue influence in a 
particular area or region; 
(8) the oil companies engage in a practice of 
discriminatory wholesale pricing of motor fuel based 
on the relationship of the purchaser to the oil com-
pany and the degree of competition they provide; 
(9) discriminatory pricing allows oil companies 
to charge different wholesale prices to company 
owned and operated retail stations, franchisees, and 
independent retailers though all may be situated in 
the same community and face the same competitive 
and operating factors; 
(10) the oil companies engage in a complex sys-
tem of cost allocations by which they employ rebates, 
incentives, credits, and market enhancement allow-
ances that hide the factors on which wholesale prices 
are based or published; 
(11) the complex system of cost allocation al-
lows oil companies to post a ‘‘wholesale price’’ that 
is far different from the actual wholesale price that
would be revealed if the cost factors were publicly 
identified and appropriately allocated; and 
(12) it is appropriate for the Federal Govern-
ment to prohibit these unfair oil company cost, pric-
ing, and marketing practices, to restore fair and 
competitive practices to the wholesale sale of motor 
fuel, and to allow American consumers to assess for 
themselves the factors that contribute to the price 
changes they pay at the retail pump. 
SEC. 3. PRICE DISCRIMINATION PROHIBITION. 
(a) PROHIBITION.—
(1) IN GENERAL.—It shall be a violation of this 
Act for an owner or operator of a terminal facility 
to sell motor fuel from the terminal facility to any 
person at a price in excess of the price it charges 
any other person, including a distributor or retailer 
which it owns or with which it is affiliated. 
(2) PRICE DETERMINATION.—For purposes of 
this subsection, the price an owner or operator of a 
terminal facility charges a distributor or retailer 
which it owns or with which it is affiliated shall be 
the price determined pursuant to the regulations 
issued under section 4(a). 
(3) EXCEPTION.—A sale shall not be in viola-
tion of this subsection if it is made pursuant to the
terms of a franchise or sales contract entered into 
before the date of the enactment of this Act. 
(b) CIVIL PENALTY.—The Federal Trade Commis-
sion may assess a civil penalty, not to exceed $1,000,000, 
for each violation described in subsection (a). 
(c) CRIMINAL PENALTY.—Whoever knowingly vio-
lates subsection (a) shall be fined under title 18, United 
States Code, or imprisoned not more than 5 years. 
(d) EFFECTIVE DATE.—This section shall take effect 
6 months after the date of the enactment of this Act. 
SEC. 4. FULL DISCLOSURE. 
(a) REQUIREMENT.—The Federal Trade Commis-
sion, in consultation with the Secretary of Energy, shall 
issue regulations requiring full disclosure by refiners and 
distributors of their wholesale motor fuel pricing policies, 
with a separate listing of each component contributing to 
prices, including the cost of crude oil (with exploration, 
extraction, and transportation costs shown separately if 
the refiner or distributor is also the producer of the crude 
oil), refining, marketing, transportation, equipment, over-
head, and profit, along with a description of any rebates, 
incentives, and market enhancement allowances. Such reg-
ulations shall establish procedures for determining the 
price an owner or operator of a terminal facility charges
a distributor or retailer which it owns or with which it 
is affiliated. 
(b) EFFECTIVE DATE.—The regulations issued under 
subsection (a) shall take effect 6 months after the date 
of the enactment of this Act. 
(c) PUBLIC DISSEMINATION.—
(1) REQUIREMENTS.—Except as provided in 
paragraph (2), the Federal Trade Commission shall 
ensure that all information acquired pursuant to the 
regulations issued under subsection (a) is made 
available to the public as follows: 
(A) Such information may be disseminated 
to the public through the Energy Information 
Administration. 
(B) Such information shall be required by 
the Federal Trade Commission to be—
(i) conspicuously posted at all retail 
motor fuel facilities in a manner so as to 
be clearly available and understandable to 
retail consumers; and 
(ii) included in or with each invoice 
for the wholesale sale of motor fuel. 
(2) EXCEPTION.—The requirements of para-
graph (1) shall not apply to trade secrets and com-
mercial or financial information protected from dis-