FTC settles charges against AmeriGas Cylinder Exchange, Blue Rhino

January 23, 2015 By    

The Federal Trade Commission (FTC) approved final orders settling charges that AmeriGas Cylinder Exchange and Blue Rhino colluded to push Walmart, a key customer, to accept a reduction in the amount of propane in exchange tanks.

Under the settlements, each company is barred from agreeing with competitors to modify fill levels or fix the prices of exchange tanks, and from coordinating communications to customers, the FTC said in a news release. The companies are also required to maintain antitrust compliance programs.

According to the FTC decision and order, AmeriGas and Blue Rhino denied the charges.

“We are pleased to have reached a resolution with the FTC,” Ferrellgas, Blue Rhino’s parent company, said in a prepared statement. “The settlement enables us to put an end to the expense and distraction of the FTC investigation and will allow Ferrellgas to continue to compete and to provide its customers with exceptional value. Ferrellgas has not admitted any liability in connection with this settlement and believes the allegations are without merit. Nonetheless, it is in the best interests of all our stakeholders to resolve this matter so we can dedicate our full attention to our business.”

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