UPS sued for hidden brokerage fees

[A/SP911]

http://www.cbc.ca/cp/business/061024/b102488.html

B.C. man sets off class-action lawsuit against UPS over hidden brokerage fees
17:50:47 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

S.Chapman
New Brunswick, Canada
C/S 914
A/SP 911

[Eldorado]

I got sent something via UPS earlier this year and got charged almost the exact same amount.. i called UPS, asked to speak to the customer service manager... explained i was upset, and they waived the charges...

kudos to this guy for actually taking it one step further.

[hpaulb]

I've been arguing with them for years. I get a lot of stuff for both business and personal. I also have the charge amouts they bill you if anyone is interested. Based on value of shipment and they don't care if it's a warrantee replacement or for repair then return or whatnot. They will look at the highest value stated on the customs forms. Customs will also tell you outright there is no duties or charges from them. Fees are purely for the paper they put in the customs box.

[GWN7]

They show up at your door and demand the money and if you don't want to pay they threaten to send the good back. Under the Customs act someone has to have your permission to act as your broker. Which UPS never asks for before charging you up the ying yang.

[dentist90]

I try whenever possible to avoid UPS just for that reason. The first time it happened it was quite a shock. I felt the same way many do... if I don't pay back it goes. It isn't a reasonable fee in my opinion. On my last UPS delivery there was no duty owed, only $17 in GST/PST but the COD bill came to $57!! $40 to collect $17 is nuts! USPS is much more reasonable. Maybe this lawsuit will force them to reduce their brokerage rates, but more likely will only make them add some fine print somewhere.

[hpaulb]

No other shipper does this. They show all costs associated with delivery to your door in the actual quoted price. Fed-ex has the price separate in ground but included in air. Price reflects actual. Canada Customs know what there doing and will say /have told me, that iot's a ripoff. Once it goes through, UPS will change there policy. O' for interest, there policy of this scam is only one way. It is completely different going to the States. They give me a screwed up explanation each time. I value everything under $2000 and no charges apply. Same shipping cost. It's under $20 can. coming up. Always get every item sent up with "GIFT" marked on it. Getts you out of tax but UPS's customs handling charges will still apply. No charges apply to USPS shipments.

[hpaulb]

While on the subject, more people than me need to complain to Pelican about the free US shipping but full charges over the border. They keep telling me about the hight costs. Crap and bull. They should ether give us a discount or a reduces cost. Kind of unfair, doesn't everyone agree.

[dentist90]

Yeah, I mentioned this to Pelican in a feedback once. Just pointed out that it is free to ship from California to Florida, but $$ to ship from California to BC, which is waaayy closer. No reply. I understand a brokerage fee, but can shipping be that much more? I think some sort of allowance would make sense, say $20 shipping credit if you order $200 or more?

[Christien]

But Pelican is at the mercy of what the shipping companies charge, are they not? The only really cheap way to ship is regular parcel mail, which Pelican won't do to Canada, for some reason - only airmail, which is way higher.

What we need is a Pelican office north of the border, where the products have been brought in with efficient shipping. I think this has been talked about, but not with any seriousness.

I suppose the other option is that we all get coordinated and organize mass orders to be shipped to a nearby border town. One or 2 people can go pick it up, pay the taxes and any applicable duty and bring it home, all for a reasonable cost for their time and mileage. I realize this only works for people near border towns (which means pretty much the big 3 cities) but it would help a lot of us!

[Eldorado]

my girlfriend lives in Fort Erie, 10 minutes from the border to buffalo... i go down there very frequently, and if anyone knows anybody that lives in buffalo.... it'd be perfect for me to pick up on the way.

in any case, i agree.. canadians are getting jipped in the shipping department when ordering from pelican.

[Christien]

And I've got a big honkin' Ford Explorer that can fit a lot of parts!

I know someone who keeps a PO box in Niagara Falls, but they won't take big stuff.

[dvkk]

Kyle, Christien, you need to do some research. I'm sure you can find a private business just inside the border in NY that will receive your packages for a very reasonable fee. Over on this side, I know of half a dozen places that charge $1.50-$2.00 per package to receive them. Then all you do is drive over and pick them up. There's no need to "own" a PO box.

Here are two places I have used that are south of Vancouver, in WA state:

http://www.thelettercarrier.com/

http://www.tsbshipping.com/services.htm

[Brian 162]

I just picked up my Pelican shipment from the Post Office. Cost me $40. It took a week longer than UPS with no broker extortion.

Brian

[hpaulb]

Post office is $5 handling plus tax's. On a note, Usually get the sender to put gift on the paperwork. Tax free and no handling. Companies won't do this though. Ebay sellers or other smaller companies do it for me. Also the post may not accept this. Seen this a few times. I fill out the back of the paperwork and send it in for refund.

[dentist90]

Originally posted by Eldorado
I got sent something via UPS earlier this year and got charged almost the exact same amount.. i called UPS, asked to speak to the customer service manager... explained i was upset, and they waived the charges...

So you paid the delivery guy and then got your money refunded? Did you get it all back or just a portion? And how much arm-twistng did it take. I'm expecting another UPS delivery soon (e-Bay purchase) and the seller would only ship UPS, says USPS charges him too much. I'm thinking this might be the time to complain as I was never informed along the way whst UPS brokerage would be. $5 is OK with me.. $40 isn't.

[hpaulb]

Refund was from the postal service charges. UPS will screw you over and you wont see sun light. Mail charges 5$ and tax. UPS is based on value. I have the charge rates at home. From what I remember its: free under $20 can, 17$ on value 20-40 and goes up from there. When getting somthing private, get them to put a low value on the paperwork.

They'l tell you its "customs charges" but it's not. It's handling. There is no customs charge. All customs wants is a copy of the paperwork. I have questioned customs many times and they always tell me the same thing. UPS is screwing everyone.

I want to follow this law suit because whatever hapens there will follow in every other province.

[Eldorado]

I asked the delivery guy to send me a bill rather than pay it up front.. he did.

the bill came.. and went..

a second notice came, and went.... at this point, I called UPS.. talked to customer service, but they were idiots... asked to speak with their manager... I spoke with their manager about my parents (who sent the package) were not informed of the charges. This went on for about 15 mins.. on how my parents, on the US side during shipment, paid a brokerage fee (they still had the bill), and I now have to pay one to recieve the package..

it took my 15 mins on the phone.. after that I got fed up.. I'm nearly 24 years old, but have a pretty young-sounding voice (at least over the phone i think i do...) I gave the phone to my father who was the sender... pretty deep voiced... after another 10 minutes, and a couple foul words later.... the guy waived the charge. it was like $34 or something, if i remember correctly...

they're all crooks...

[dentist90]

I totally agree about the sneakiness of it all. The package I am expecting fom CA is being sent UPS and I have had NO notice of any additional fees. I get a tracking e-mail to follow it's progress, but nowhere on the e-mail does it mention international 'handling' fees.
As far as I am concerned the shipping is arranged by the shipper, not the receiver. I think UPS should collect the brokerage fee in advance from the shipper, or have the shipper fill out the paperwork, that way the shipper (vendor) can tell me what ACTUAL cost will be. The way they do things is not full disclosure, probably because I'm sure most shippers would be shocked to find out that a parcel that costs $25 to ship will have an additional $40 handling fee to fill out a piece of paper. I'll keep my receipts in case I can become part of this class action suit.

PS: UPS can charge $1000 brokerage fee if they want.. they should just tell you up front so you're not over a barrel when the delivery guy comes. The way it's set up the receiver doesn't even get a chance to ask

[hpaulb]

Does anyone have a link to the law firm doing the class action suit. I think I'd like to do some resaerch and maybe send them some information.

[dentist90]

I found this link that might help build the case:
UPS Hidden Fees Complaints

Found this other forum for those who just want to vent:
United Package Smashers