NuCO2 Hit with Lawsuit Over Price Increases, Breach of Contract

NuCO2 has been hit with a class action lawsuit alleging that the beverage carbonation company has carried out a “systematic deceptive scheme” to overcharge customers.

Specifically, the suit claims that NuCO2 secretly increases prices for beverage-grade carbon dioxide and draught beer nitrogen gas, as well as related equipment, without justification and in violation of its contracts.

How Did NuCO2 Supposedly Break Its Contracts?

NuCO2’s contracts establish a fixed monthly price each customer will pay for equipment and products. The agreements also outline how and when NuCO2 can increase these prices.

According to the lawsuit, NuCO2 is failing to abide by its own rules.

The lawsuit claims, however, that NuCO2 isn’t meeting either of these requirements.

The company has “for years” automatically increased prices without the required notice and unrelated to the dates on customers’ contracts, the suit says. Over a six-year contract term, customers are supposedly being forced to pay as much as 30% more each month than what was originally agreed upon.

How Does the Suit Say NuCO2 Increases Prices?

Gas and Equipment

The lawsuit claims that price increases are automated through NuCO2’s customer relationship management system and take effect for all customers at the same time. The rate increase can vary between customers, the suit says, but usually ranges between 1% and 12%. Quietly raising prices for bulk CO2 tanks, high-pressure gas beverage systems, carbon dioxide and other gases is all part of the company’s “broad strategy to increase revenue and profit,” the suit says.  

For example, the plaintiff in a class action against NuCO2 alleges that her restaurant and her hotel entered into a standard contract with the company in April 2015 and December 2009, respectively. According to the suit, NuCO2 agreed to provide a bulk carbon dioxide tank to the restaurant for $58 per month. Several years later, the price rose to $80.71 per month – an increase of nearly 40%. Likewise, the hotel agreed to a $107.82 monthly charge as part of NuCO2’s “budget plan.” But, by 2015, the hotel was being charged $142.27 for the exact same service, the suit says.

Fuel, Energy Surcharges

NuCO2 also charges customers a fee it calls a “fuel” or “energy” surcharge that is supposed to cover the cost of delivering products to customers. This fee, however, allegedly bears no relation to NuCO2’s actual increased fuel or energy costs, is not used to offset these costs, and is not based on the “prevailing national average price index for diesel fuel,” as the company claims. According to the suit, the surcharge is simply another way for NuCO2 to “generate extra profit at its customers” expense.

For example, NuCO2’s fuel surcharge fee was $14.55 in February 2018 when the average retail cost of diesel fuel was $3.05. The next year, when the retail price decreased to $3.00, NuCO2’s surcharge went up to $16.05, the suit says. Even though diesel prices were going down, NuCO2 was increasing its fuel surcharge fee.

Complaints from Consumers about NuCO2

The lawsuit against NuCO2 includes several complaints submitted to the Better Business Bureau about the beverage carbonation company. A sample of these complaints can be read below [sic throughout].

Crooks and Cheaters. Never [do] business with th[ese] people. I have 5 years contract with them with starting fee around $75 which by the end of my term came to be around $150 per month…I was then sent an invoice for $5,563.98…claiming that my contract was never canceled and I have to pay [] them for 5 year term in full…Beware of this company.”
— March 2018, BBB.org

They raise their prices without any recourse or justification….I’ve tried several times to reach an agreement and they just tell you bluntly they don’t care about the issues they will not cancel your contract and if you don’t pay they will send it to a collections agency and they will…[I’ve] just had all kind of issues, headaches and problems, I’ll hav[e] a blemish on my credit that I’ve built in 33 years.”
— November 2018, BBB.org

NuCo2 is a company based on deceit…They raise their prices without any recourse or justification…After reading other complaints this company needs to be stopped form doing business that is false and misleading.”
—  December 2018, BBB.org

How a Class Action Can Help

A class action lawsuit could help companies get back money for the price increases, as well as require NuCO2 to change the way it raises rates for its customers.

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