A federal class action lawsuit claims FedEx Express overcharges for residential deliveries while offering cheaper rates to businesses and the government.
The FedEx Express class action lawsuit accuses the world’s largest express transportation company of tacking on surcharges to home or private residence deliveries that are $0.90 to $1.15 more expensive than commercial deliveries. These surcharges include a $2.75 delivery charge to any home or private residence and an extended delivery-area surcharge of $3.00 to certain U.S. ZIP codes FedEx deems more costly and inconvenient to service. These surcharges are cumulative, meaning that if a shipment is a residential delivery and is also “destined to select U.S. ZIP codes,” the shipment is subject to both a residential and delivery area-residential surcharge.
According to the FedEx delivery surcharge class action, however, the methods FedEx uses to determine if a shipment is to a residential address aren’t always correct, inevitably resulting in customers being overcharged significant fees for having packages delivered to non-residential destinations.
“The database that FedEx Express uses is riddled with errors. The database incorrectly identifies government offices, high-rise office towers, and other similar buildings as residential addresses, even though it is readily apparent to FedEx Express personnel that those buildings are not residential and the imposition of a residential delivery charge constitutes an overcharge,” the FedEx Express class action lawsuit states.
The lawsuit further alleges that FedEx automatically defaults “unknown” addresses into the residential category, and accuses FedEx Express delivery persons of providing tracking entries that contain a high and unbalanced error rate in misclassifying shipments to commercial destinations as residential deliveries.
The FedEx Express delivery charge class action lawsuit is brought on behalf of all persons who purchased FedEx Express package delivery services in the U.S. since February 18, 2010, and were charged and paid a residential delivery surcharge or a delivery area-residential surcharge (or both) for any delivery that was not destined to a home or private residence. It is seeking damages and other relief for breach of contract.
A copy of the FedEx Express Residential Delivery Charge Class Action Lawsuit can be read here.
UPDATE: A class action settlement has been reached in this case, Gokare v. Federal Express. See our detailed claim filing instructions here.
UPDATE 2: A federal judge granted final approval to the FedEx Overbilling Class Action Settlement on Nov. 22, 2013.
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