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UPS Class action suit


Mitch Cronin

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http://www.cbc.ca/cp/Oddities/061024/K102418U.html

B.C. man sets off class-action lawsuit against UPS over hidden brokerage fees

17:51:11 EDT Oct 24, 2006

Canadian Press: TERRI THEODORE

VANCOUVER (CP) - Hidden fees seem to be an everyday irritant for consumers, but a B.C. man is so angry about a fee charged by United Parcel Service he's willing to become the point man for a class-action lawsuit.

It started after Robert Macfarlane purchased an amplified telephone device from Arizona over the Internet last year. He knew he would have to pay shipping and handling fees and government levies, but he was also ordered to pay a $38.40 brokerage fee charged by UPS.

"It's outrageous," said Macfarlane's lawyer Jim Poyner.

"It's a surcharge that nobody agrees to, nobody knows anything about it until the delivery person is at the door."

Poyner said Tuesday he expects hundreds of thousands of people have been in the same situation across the country, and there are plans to file a similar lawsuit in Ontario.

"It's certainly a problem that affects the entire country."

The lawsuit has been filed under the Class Proceedings Act, but the B.C. Supreme Court must first determine if the case fits the criteria for a class-action lawsuit.

The court action claims the UPS brokerage fee is "so harsh and adverse as to constitute an unconscionable practice."

The same Canada Post service for goods shipped from the United States to Canada costs $5.00.

A spokesman for UPS was unavailable for an interview.

Poyner said people are usually never told there will be an added fee until there's a knock on the door.

"(The delivery person) has your goods in one hand and the other hand is out wanting to be paid more money," he said.

The lawsuit accuses UPS of misleading and deceptive practices by failing to get the consumer's consent, not telling the consumer about the fee and not allowing the consumer to arrange their own customs clearance.

Not only does Macfarlane want his own money back, but the lawsuit wants everyone who paid the fee reimbursed.

Poyner said the other major goal of such a lawsuit is what the court calls "behaviour modification."

In one of 10 remedies requested in Macfarlane's statement of claim, it asks for a permanent injunction stopping UPS from continuing to charge the fee.

It also asks for punitive, aggravated and exemplary damages.

© The Canadian Press, 2006

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Mitch, you know I was thinking about posting that here but didn't know if it was related to aviation enough.

I've had a lot of experience with this problem over the years.

It is not isolated to us as Canadian consumers of items shipped from the US.

When I was selling to customers in the US I made the mistake of using UPS for my first shipment of about 60 packages. The price was the least expensive of all the methods and shipping time seemed resonable. But guess what happened about two days later when they hit the U.S. border? Yup. I got a call from one of those famous brokerage agents telling me that if I wanted them to proceed we would have to pay an additional $25 per package!! mad.gif

After that experience I've always insisted on using FEDEX or regular US Post. AT least with them you get the full price of the shipping cost upfront.

From what I have heard UPS does a great job of shipping within the US but for some reason there is a brokerage scam that has been affecting Canadians for at least 20 years or more. I'd sure like to get in on this lawsuit.

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My beef with UPS isn't brokerage per say - but that they collect brokerage on merchandise they have no authority to.

For example I had to ship some equipment to Illinois for maintainence under the OEM warranty of the hardware. Upon return UPS showed up looking for $230 in brokerage!

Problems:

1. We have our own customs broker, UPS had no business touching it.

2. The equipment was not new and we didn't pay anything for the service so there was no brokerage to collect.

It would be like being expected to pay taxes on your iPod and laptop every time you cross the border.

Ultimately the OEM took the war to UPS - but we were getting letters for quite a while.

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Howdy Pivot...

I was floored the first time I discovered the "brokerage fee"!... I think I had to pay about $50 bucks for a $50.00 item for which I'd already paid $25 for shipping!

There's been at least a few items I've bought on Ebay that would only ship via UPS, thus costing me dearly ... Otherwise I try hard to get them to use the good ol' postal service. I haven't the faintest clue how a class action suit works, but even if I couldn't climb aboard, I'd love to see this one win on principle alone!

....as for being non aviation related.... in the world according to Mitch, this forum has always been a room for aviation employees, and their ilk, ...to yak. What comes to the minds of we kind of folk is anyone's bet.... often it's aviation related.... sometimes it ain't. tongue.gif .... go figure. wink.gif

Cheers,

Mitch

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Taylor Made boat fenders are guaranteed for life. One of mine went flat. I emailed Taylor Made in the US. They sent a "free" replacement via UPS.

UPS tried to get $46.00 for brokerage at the door, (fender value $75.00). I told the driver to take it back/send it back to Taylor Made.

Taylor Made eventaully made good and I got the replacement through my marina.

I got bills for brokerage for about 3 months until I threatened a harassment law-suit.user posted image

I always email the seller on EBay and ask them to send the purchase via USPS...no hassles at all. I don't use UPS now.user posted image

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The advantage of UPS brokering your goods is that there is no hold up due to Canada Customs so if time is important it may be worth it depending on your needs. My experience using USPS is that it can take around three weeks, partly due to the time that CC takes to release your goods for delivery by Canada Post.

I agree that the surprise brokerage fees from UPS are extremely annoying and seem like a bit of a ripoff when you were not aware that they are coming, (hope this guy gets somewhere with his case), however if you can specify UPS Express or Expedited the shipping is slightly more but no brokerage add ons. This has worked for me with photographic gear from the US and I like to have a tracking number which you do not always get from USPS, however if you are not in a hurry USPS can be a good way to go.

I have found Fedex service great.

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I have found Fedex service great.

My first choice every time. The charges are up front. My account has been managed well. The service is fast and I have yet to have a border delay. USPS is the definition of "snail mail" and I have found that the customs delays are frequent.

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