Holding FedEx Accountable
Small business owners and American consumers rely on shippers like FedEx to send and receive merchandise, but as a member of the U.S. Chamber of Commerce’s Institute for Legal Reform, FedEx has been trying to avoid accountability by closing the courthouse doors on Americans, while at the same time, it doesn’t hesitate to use the courts for its own advantage.
When a group of American consumers noticed that FedEx was overcharging them by inappropriately adding a residential surcharge for deliveries to non-residential buildings, they wanted justice.
Though a small dollar overcharge each time, when multiplied by the hundreds of thousands of packages - the numbers add up quickly. When these consumers attempted to hold FedEx accountable, FedEx argued that its customer contract, an online 170 page document, required that the claim be presented internally before any lawsuit could be filed. In addition, that FedEx claimed that online contract contained a class action waiver, preventing individuals from joining together to take on FedEx.
Despite the roadblocks to justice FedEx attempted to put up, the consumers were allowed to continue preparing for trial and uncovering documents. These documents included internal emails discussing this “pervasive practice” and showed that FedEx knew it was inappropriately overcharging business owners and American consumers, but they did nothing and continued stealing from their consumers.
Ultimately, the civil justice system uncovered the truth about FedEx’s scam, and FedEx settled the class action case on a nationwide basis.