7-Eleven hit with record $4.5 million FTC fine over fuel outlet acquisition
The 7-Eleven company found out the hard way the consequences of not following rules of the Federal Trade Commission.
The Federal Trade Commission (FTC) announced this week it fined 7-Eleven, Inc. and its parent company, Seven & i Holdings Co., Ltd., $4.5 million to settle the lawsuit it filed against the convenience store chain for violating a 2018 FTC consent order by acquiring a fuel outlet in St. Petersburg, Florida, without providing the Commission prior notice.
The $4.5 million penalty marks the largest civil penalty ever collected in an FTC case involving a prior-notice violation. It is also the largest negotiated settlement of any order violation in the FTC Bureau of Competition’s history.
“Under the Trump-Vance FTC, merger remedies that protect competition are once again on the table. But for merger remedies to work, firms must abide by the terms of their consent orders, and we will hold parties accountable when they don’t live up to their commitments,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition. “7-Eleven failed to fulfill the terms of the FTC’s consent order and is now paying a record price. The FTC will not hesitate to protect the public by actively enforcing order violations and seeking penalties against future violators.”
FTC lawsuit stems from 2018 Sunoco fuel outlet deal
The settlement resolves an FTC lawsuit filed in 2023. That suit arose from a 2018 consent order to resolve the FTC’s antitrust claims that 7-Eleven’s $3.3 billion acquisition of 1,100 retail fuel outlets from Sunoco would harm competition and raise fuel prices for consumers in 76 local markets.
In the consent order, 7-Eleven agreed to:
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Divest certain fuel outlets
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Provide prior notice to the FTC before making future acquisitions of competing fuel outlets in the local markets
This prior notice allowed the FTC to investigate—and, if needed, file an enforcement action—if additional acquisitions by 7-Eleven harmed consumers in these local markets.
St. Petersburg outlet specifically barred in consent order
The consent order specifically listed the St. Petersburg outlet as one that 7-Eleven could not acquire without providing the FTC with prior notice.
According to the FTC’s complaint:
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7-Eleven acquired the St. Petersburg fuel outlet in December 2018, in violation of the consent order
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On March 25, 2022 — more than three years later — 7-Eleven first informed the Commission it had acquired the St. Petersburg outlet
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The FTC found that 7-Eleven’s internal controls for ensuring compliance with the consent order were wholly inadequate
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The company also failed to implement any meaningful systems to ensure compliance with the Commission order
Additional penalties include forced divestment and new oversight
In addition to the $4.5 million in civil penalties, 7-Eleven was required to:
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Divest the St. Petersburg outlet to a strong buyer
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Commit to additional prior approval and prior notice requirements
These requirements will help ensure the Commission is made aware of any attempts by 7-Eleven to further consolidate in the local fuel markets addressed in the FTC’s order.
FTC unanimously authorizes judgment and penalties
The Commission vote authorizing staff to file the stipulated final judgement and order for permanent injunction and civil penalty was 2-0.