Class Action Lawsuit

Discussion in 'FedEx Discussions' started by Goldilocks, Oct 13, 2013.

  1. Goldilocks

    Goldilocks Well-Known Member

    Does anyone know of another class action suit brought about by customers? This is the only one I could find. Heard its got something to do with Code 8, which is why we are having to reattempt code 8 business packages twice in one day and must be after one hour....Only found the overcharging customers lawsuit

    FedEx Overcharging Class Action Settlement Wins Preliminary Approval
  2. Route 66

    Route 66 Bent Member

    well, there's another 21.5 mil they'll be extracting from our pockets
  3. hypo hanna

    hypo hanna Well-Known Member

    So true!

    Every failed lawsuit or costly business decision by management automatically results in a cost savings on the backs of hourlies. Usually includes a self congratulatory bonus of some kind for executives for fixing the problem they created.
  4. TUT

    TUT Well-Known Member

    The residential setup between Fedex and UPS is one of the few differences between companies, in this case favors UPS.

    If a customer puts residential on a package with UPS and the driver scans in commercial on delviery the customer isn't charge the residential fee as marked on the label.

    Fedex if you mark a package residential and it is commercial on delivery, it will stay residential, ground or express, it does seem fishy but not so fast. I get this issue to a point with the ground side, when making a residential ground that comes out Home Delivery, it's a different group handling those, so people are going to places they shouldn't be, the customer making the mistake is causing non-optimal routing for Fedex. I get that, even though that is an advantage for UPS still as they can have the fee taken off by delivery scan.

    Express though it's all the same network and if the label comes out residential, the residential fee is applied no matter if it is delivered to City hall. I believe that is what this is about. It is in your Service Manual stating what Fedex will do, to me it could be looked at their policy and terms, so in some case I can see this as nothing illegal but the company policy on how they process labels, deliver them and then charge them as stated. Fedex Sales doesn't hide this from my engagement. It's the policy... they share it as it is published, customer can decide to take it or leave it.
  5. MrFedEx

    MrFedEx Engorged Member

    If you have ever shipped a package to a residence, even as an employee, you will be included in the class action. I got my paperwork in the mail about a week ago. This all stems from intentionally overcharging customers for residential services on commercial packages. Please note that FedEx continued to do this, even after internal correspondence verified that it was an issue. In other words, they hoped they could get away with it. What does this say about the ethics of FedEx?

    Of course, since it's a settlement, "FedEx admits no wrongdoing", and as usual, when this story first broke, FedEx said it would "vigorously defend itself in court and denied any illegality". This is code for WE DID IT, AND WE WILL SETTLE OUT OF COURT TO SAVE MONEY. TUT has posted something that seems to deflect responsibility away from FedEx, but that's inaccurate. Sorry, TUT, but this goes way beyond a simple misapplication of service policy. They were intentionally changing over packages and then reaping the rewards financially. FedEx did it on purpose, knowing it was wrong, and figuring nobody would audit their bills.

    I'm not going into it here yet, but there is more coming along these same lines of deception. For years, I have delivered and picked-up from one of our largest shippers, who are about to accuse FedEx of massive falsification concerning the 1030 service guarantee. I spent about 15 minutes talking to one of their lawyers recently after being invited to coffee to discuss it. My guess is that there are other big customers who are reviewing their bills and when packages were actually delivered as opposed to when FedEx says they were.
  6. Mr. 7

    Mr. 7 The monkey on the left.

    This makes sense to me. I see a lot of commercial labels marked as "res." and I know the resi. surcharge is somewhere between $2-4 based on "extended range" or, whatever the b.s. extra fuel charge is.

    So, my question is, if X knows it's getting extra money if the shipper marks something resi. and it's not, does X turn around and collect the resi. surcharge when a shipper marks something bus. and it's not?
  7. TUT

    TUT Well-Known Member

    Page 123 of your service manual.

    Ground package, later deamed residential by the driver will be charged $3.20 (this is the closer ones, the Delivery Area Surcharge for residential is more).

    Home delivery residential charge is $2.80. Fedex is saying we want ground residentials to go into home delivery, meaning on the label, it saves us money, it saves you money and gives you more features. So imo a shipper would be smart getting this figured out on their end.

    Now the biggest issue would be if it goes out ground and it's clearly a commercial delivery and it is flagged residential... that's no good.