Iowa Lawsuit Targets Casey’s Over False Advertising Claims
Allegations of Misleading Discounts
DES MOINES, Iowa — Casey’s convenience-store chain is facing a potential class-action lawsuit that accuses the company of advertising discounts that customers never actually receive at the cash register.
The lawsuit, filed in U.S. District Court for the Southern District of Iowa, names Casey’s Retail Co., Casey’s General Stores Inc., and Casey’s Marketing Co. as defendants. Together, the companies operate more than 2,500 convenience stores across Iowa and 15 other states.
Attorneys for the plaintiff, Kit Mason of Allerton, allege that Casey’s displays signs promoting in-store discounts, but the reduced prices are not applied when customers pay. The lawsuit says this practice misleads customers and unfairly boosts profits.
Examples Cited in the Case
Court filings detail several instances where Mason claims to have been overcharged:
- On July 10, 2025, Mason visited a Casey’s in Humeston, where a “2 for $4” special was advertised on 24-ounce cans of Four Loko. At checkout, Mason says he was charged $7.
- On July 20, 2025, Mason shopped at a Casey’s in Corydon, where a “2 for $6” deal was promoted for Smirnoff Ice. Instead, he says he was charged $7.
- On Aug. 19, 2025, at a Casey’s in Urbandale, Mason attempted to buy Blue Moon beverages under a promotion offering $3 off the purchase of three 19-ounce cans. The lawsuit claims the discount was not applied.
Similar complaints also include food items. One example involved a “2 for $5” candy promotion, where the bags rang up at $5.99 each.
The lawsuit emphasizes that the in-store signs promise “instant rebates” automatically at the register, with no indication that a Casey’s Rewards membership is required.
Casey’s Response
Casey’s has not yet addressed the specific allegations in its legal filings. However, in a written statement, a company spokesperson said, “We are aware of the allegations and intend to vigorously defend against them. We will respond formally through the legal process.”
The company also noted in filings that if each of its 2,500 stores failed to apply just one $2.76 discount per day since August 2023, the damages could total $5,043,900.
Broader Impact and Comparisons
The lawsuit alleges the practice is widespread across Casey’s stores in Iowa, Nebraska, Minnesota, Missouri and Wisconsin. It also points out that competitors like Kum & Go, Kwik Trip and Kwik Star apply similar in-store discounts without issue, suggesting Casey’s practices are out of step with industry norms.
The case seeks damages for fraudulent misrepresentation, negligent misrepresentation, unjust enrichment, and unfair or deceptive acts. Attorneys are also asking the court to order Casey’s to stop advertising discounts that are not applied at checkout and to prohibit the company from collecting taxes on amounts that should have been discounted.
Case Moves to Federal Court
Originally filed in Polk County District Court, the case was moved this week to federal court. The law firm representing Mason is Shindler, Anderson, Goplerud & Weese of West Des Moines.
The request for class-action status is pending. If granted, it could allow thousands of Casey’s customers to join the lawsuit.