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A federal class action lawsuit claims FedEx cheats customers out of millions, if not billions, of dollars in overcharges by “upweighting” packages and engaging in other corrupt billing methods.
The lead plaintiff in the FedEx class action lawsuit, NYBikerGear, claims FedEx cheats customers in three ways: though “upweighting,” through a “Canadian Customs scam,” and by failing to apply discounts properly.
“In the ‘upweighting’ scam, the defendants have manipulated their information technology so that it rates small packages at a fictional higher weight than the actual package weight,” says the FedEx class action. “The higher weight, in turn, automatically results in the assessment of higher rates and surcharges for these packages.”
“In the ‘Canadian Customs scam,’ the defendants have billed their customers for Canadian Customs duties and related charges on FedEx Ground shipments from the United States to Canada. The defendants knew such charges were to be paid by the Canadian recipients but instead misrepresented to customers that such charges could not be collected from the recipients.”
Finally, the class action lawsuit claims that FedEx does not abide by its pricing agreements, which give customers discounts when they ship packages with a FedEx billing number. A class action lawsuit filed in February accuses the transportation company of overcharging customers for residential deliveries.
This is not the first time FedEx has faced a class action lawsuit for allegedly cheating customers. The shipping company was hit with a class action lawsuit in February for overcharging customers who ship to residential addresses.
The FedEx RICO class action lawsuit is seeking declaratory judgment, an injunction, costs and treble damages for RICO fraud.
Updated March 18th, 2011
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2 thoughts onFedEx Billing Fraud Class Action Lawsuit
Has anyone noticed that Fedex tries to double-bill for shipments by charging the recipient’s account number, and then again charging the sender’s account number too, claiming there was some kind of problem charging the recipient’s account number? I feel pretty sure they are doing this, and after learning about some of these other frauds they have pulled, it comes as no surprise.
I never got my almost $100 package from Fedex ground smart post , their claiming to have delivered it to my nextdoor neighbor and I was at home at 1:51 pm with my door open when they were suppose to have delivered it , my nextdoor neighbor was on vacation so I was getting his mail for him, unless he is a ghost, he did not get my package and he did not make a statement to them that he was my friend and he would make sure I got package. With that said they stole my package, what can I do to get my money for package back? and make them pay for my compensation