4 Gas-Saving Deals That Rarely Pay Off

GAS PRICES MAY have dipped slightly over the past few days, but — at an average of $4.07 for a gallon of regular unleaded — they're still far from cheap.

Yet, while consumers see exorbitant gas prices as an ever-tightening stranglehold on their monthly budgets, many enterprising companies see it as a business opportunity. Since gas prices started skyrocketing, hundreds of companies have either started to sell products aimed at improving a car's fuel efficiency or to offer discounts at the pump. The problem is that many of these methods don't pay off.

"They're not scams, per se," says Alison Preszler, a spokeswoman for the Better Business Bureau, "but they are businesses trying to come in and take advantage of the current market." Many of these deals carry tight restrictions hidden in plenty of fine print, while others fail to carry through on promised fuel savings.

Here are four types of gas-savings deals that consumers should be extra vigilant about:

Worse, these products — which range from motor oil additives to flex-fuel filters using a 50-50 mix of water and gas — can do serious damage to your car and void your warranty. "All car warranties have a clause in them that negates a manufacturer's responsibility if the damage is due to modification or abuse," explains Rod Davis, head of the Better Business Bureau's Autoline program, which handles auto-related complaints. Installing a gas-saving product is considered to fall into both categories, leaving you responsible for the repair bills.

The deals aren't just on the web. The BBB is investigating RadioGasDeals.com, which airs radio ads offering consumers the chance to lock in gas prices at $2.49 a gallon. The BBB says the offer raises several red flags. "We're urging consumers to use extreme caution," says Preszler. RadioGasDeals.com's site contains no contact information beyond a fill-in form to send an email and there's no indication of how much you'll pay for the deal — in reality a gas gift card — until well into the submission process. The site's parent company, Free Zone LLC, which also owns GasLockedIn.com and GasPumpRebates.com, conducts business under the names CYMedia Group, America's Gas Relief Program, FreeZone Rewards, High Altitude Marketing, iPod Deal, Media Zone, The iPod Deal and Xbox Free Zone, according to the BBB. The company has an unsatisfactory record for five unanswered complaints and four unresolved complaints in the past 36 months, including failure to deliver promised products and misrepresenting the offer, according to the BBB. FreeZone did not respond to requests for comment.

Fortunately for consumers, Visa (V) and MasterCard (MC) explicitly prohibit merchants from charging consumers extra for paying with a credit card. (They do, however, permit stations to offer a discount for using cash.) "It's important for consumers to have the choice on how they want to pay," says Barbara Coleman, a spokeswoman for MasterCard. (American Express (AXP) and Discover (DFS) do not prohibit merchants from tacking on a fee for credit card purchases.)

If you encounter a surcharge for paying with plastic at the pump, report the station to your card issuer, which may fine it or force it to discontinue the fee, suggests Curtis Arnold, founder of credit card information site Cardratings.com. "They want you to use your card, so they definitely want to know," he says. If you already overpaid, use your receipt and a snapshot of the lower advertised price to file a credit card dispute and request that the difference be refunded. (For details on how to go about doing so, read our story.)

EBay (EBAY) currently lists several Rite Aid (RAD) coupons that award a $30 gas card when a customer transfers a prescription to its stores. Sellers are asking for up to $10 each. But a quick visit to RiteAid.com reveals the coupon — which can be downloaded there for free — is for a store gift card, with a sweepstakes entry for a year's worth of free gas. It also can't be used in New Jersey or New York, something few sellers mention.

"I hate to sound like an old broken record, but if it sounds too goo to be true, it probably is," says Linda Sherry, a spokeswoman for Consumer Action, a nonprofit consumer advocate. "You have to ask yourself, 'Why would folks offer this valuable coupon for so little when gas is $4-plus a gallon? What are they getting out of it?' They're getting your money, and you're getting taken advantage of." Check with the retailer or the company the coupon is for, to ensure the deal is legit and that there's no fine print.

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