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A class action lawsuit has been filed by plaintiffs Steven Sival and International Samaritan against package delivery giant United Parcel Service Co., alleging that it has been systematically overcharging its customers.
According to the class action lawsuit, UPS has been charging its customers for the first $100 of declared value coverage despite openly stating under its Terms that “the first $100 of coverage is free at no charge, whether or not [the customer] purchases additional declared value coverage.”
The plaintiffs have, from time to time for the past six years, each shipped multiple packages via UPS with a declared value in excess of $300 and claimed to have been overcharged for additional coverage protection in violation of the applicable Terms and shipping rates in effect during the time of shipment.
“When the matter is brought to UPS’ attention, UPS always acknowledges the mistake and credits the account, but it does not fix the problem,” the class action lawsuit states. “This problem has been known for at least the last 18 months by certain persons in the small community of shipping consultants who make a living by auditing large companies’ shipping costs looking for savings and overcharges.”
“Smaller companies and individuals who lack the means or sophistication to hire professional shipping consultants continue to get overcharged by UPS,” the class action lawsuit contends.
The class action lawsuit alleges that the overcharging would “reflect a deliberate breach of contract with the intentional effort to defraud its customers.”
The UPS class action lawsuit also accuses the shipping giant of crediting with refunds the few customers who complain, knowing that the number of customers who “do not catch UPS’ breach of contract and fraud will far outnumber those that do.”
It should be recalled that in November 2013, another package delivery company, Federal Express Corp., reached a $21.5 class action settlement over similar allegations that it had systematically overbilled customers. FedEx allegedly overbilled for deliveries to business and government offices with bogus fees. In addition, the company allegedly failed to advise consumers that there are certain ZIP codes that would necessitate an additional fee due to the addresses’ remote location.
The UPS class action lawsuit is seeking damages for all customers who used UPS to ship a package and paid for additional coverage for loss or damage from UPS.
The UPS Class Action Lawsuit is Steven B. Sivak and International Samaritan vs. United Parcel Service Co., Case No. 2:13-cv-15263-GER-RSW, in the United States District Court for The Eastern District of Michigan.
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11 thoughts onClass Action Lawsuit Says UPS Has Been Overcharging Customers
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I have a couple of e commerce businesses and have been using UPS via stamps.com for 5+ years and recently noticed that many of my shipments have an adjusted rate. 95% of my packages are 15x15x10 and weigh less than 7lbs and the rates were adjusted to most commonly 15lbs. I am getting the runaround from them stating that its based on the box size which is ridiculous since many times, with the same size box and weight, the price isn’t adjusted I’ve had over $2400 in adjusted amounts just in the last 2 years.
Please add me . I paid a hefty fee to send papers from New Hartford, NY to Poland several years ago. It was a nightmare to get the package as it showed up at one of my hotels after I had left to go to our next one we were staying at on our tour. I finally got the package two hotels later.
UPS damages my parcels .We pay them insurance and they deny claims Fraud .and over charge on shipping costs.
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We are a small company that uses stock size boxes 16x16x8 to ship our items. We are continually upcharged for a 16x17x8 box. I believe we are being scammed by UPS, are you?
I built some lab equipment for a University. I shipped the equipment with UPS insurance (called declared value) Funny the UPS store called it insurance. The shipment was insured for 4800.00 dollars to cover my costs if something was damaged. Boy was it damaged. I took pictures when I picked it up from the UPS store. It appeared that the most damage occurred when UPS picked it up and took to their inspection point and then shipped back to the store. I am in the same boat that seems to be a constant complaint with UPS. You didn’t pack it correctly. How about you didn’t deliver it correctly. I never received any payment from UPS and didn’t even get back the charges I paid for declared value. It was sold as insurance and the way UPS does this is fraud not to mention selling insurance without a license.
UPS brokerage charges is absolutely disgusting. Just got charged $36 brokerage on a $102 order from the USA, for something that takes 5 minutes work. These clowns are making the equivalent of about $400/hr for low skilled data entry type work. Bring on the class action lawsuit.
I never got the package and now UPS is charging me, $140.27 in brokerage fees, break down like this: Disbursement $7.00 dollars FDA clearance $21.25 warehouse fees $ 100.22 BTA prior notice 10.00 duty amount $1.80 and the most amuse part is the shipment value is 22.00 dollars, the shipment is still in UPS facilities, because it was never sent to my house, never delivered, but the letter with all these charged was delivered
I worked at UPS for 7 years and this is no surprise. Your packages are thrown , stepped on, destroyed and it should come as a surprise your package gets to its destination at all.
I ship USPS, and it is far cheaper and far more reliable , use priority mail , and order Regional rate boxes. You will save a ton. Recently I had shipped an item and for the first time in over 2,000 packages shipped , an item got damaged. They paid the damages in 10 days! USPS is the Way customers would prefer an item is handled.
i am still fighting with usps over $240…………..all three services are basically the same, they are all scum when it comes to claims
i was working for a small company shipping bras and other ladies personals through UPS. For a garment I got the normal shipping would have been maybe 5 dollars through the usps or fed ex is was 13.00. I had a garment that was usually 15.oo cost my 32.00. So we had to stop ordering by ourselves and order as a group because it was to high. The company is ARDYESS INTERNATIONAL.We have about 500 salespersons.