ALBANY, N.Y. (AP) — Illegally tacking a $2 recycling fee onto every oil change is costing a New York-based automobile service station company tens of thousands of dollars in penalties.
State Attorney General Eric Schneiderman announces Wednesday a settlement with Binghamton-based Kost Tire Distributors Inc. for imposing an oil and filter recycling fee.
Schneiderman says the company collected more than $180,000 starting in January 2012 by charging customers an extra $2 for disposing of oil and filters.
State law prohibits service stations from charging fees for disposing used oil. The businesses are required to collect used oil free of charge.
As part of the settlement, Kost has agreed to pay the state $181,511 the company collected from the fees, plus nearly $93,450 as a civil penalty.
Kost owns 25 service stations across upstate New York.