AUTO MAINTENANCE Jiffy Lube reaches deal to settle suits

Opponents call the settlement a sham that shortchanges customers.
DALLAS (AP) -- An agreement has been reached in class-action lawsuits by drivers claiming they were cheated when Jiffy Lube International tacked on environmental surcharges to their oil-change bills.
An Oklahoma judge was poised to approve a settlement that would close at least nine pending cases from California to New Jersey; a similar accord has been reached in a New York case. Some customers would get $5 off their next oil change. The three law firms that negotiated with Houston-based Jiffy Lube would split $2.75 million.
Criticism
Some attorneys, however, are trying to kill the nationwide deal, calling it a sham that would shortchange customers. They plan to ask a judge to reject the deal at a Nov. 17 hearing.
Lawyers attacking the settlement complain that customers who went to one of the 1,800 stores run by franchisees would get nothing.
Critics say Jiffy Lube called the fee an environmental surcharge to fool customers into thinking it was a tax. The fee ranged from 80 cents to $1.25, and was added to the price of an oil change at 400 company-owned stores from late 1999 until April. Some but not all of the 1,800 Jiffy Lubes owned by franchisees also charged fees, according to the company.
"It was just a straight rip-off for $1.25 every time someone came in," said Scott R. Shepherd, a Pennsylvania attorney who sued. "They were hiding a price increase."
Jiffy Lube officials and lawyers declined interview requests, but a publicist hired to answer related questions said "this is a pretty common fee."
This year, only about one-third of the nation's oil-change garages add an environmental charge, with the average being $1.62, according to trade publication National Oil & amp; Lube News.