UPS Ordered to return $1.2 Million to NYS

By Tara jessup
October 27, 2015

NEW YORK – Some UPS employees violated the law by recording inaccurate delivery times on packages sent via UPS next-day delivery services by government customers. That resulted in premium-priced packages that appeared to be delivered by their guaranteed commitment times when, in fact, they were not.

UPS employees also applied inappropriate “exception codes” to excuse late next-day packages – including claims of “adverse weather” interfering with on-time deliveries when in fact conditions were sunny. As a result, government customers were unable to claim or receive refunds for the late deliveries under the terms of their contracts. Under the agreement negotiated by Attorney General Eric Schneiderman, more than $1.2 million will be returned to New York and local governments throughout the state.

“UPS improperly profited from charging New York State government entities – and ultimately our taxpayers – when its employees failed to meet its guaranteed delivery times for overnight deliveries,” Attorney General Schneiderman said. “Corporations that improperly profit at the expense of taxpayers will be held to account.”The agreement was the result of investigations over a 10-year period, from 2004 to 2014. Violations took place in government agencies in several states. As a result of the settlement, New York State and many local municipalities will be compensated for these inaccurately recorded late deliveries. 

October 27, 2015

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