UPS to pay $4 million to settle claims of deceiving government customers
Massachusetts will receive more than $180,000 from a $4 million, multistate settlement involving shipping giant UPS, Attorney General Maura Healey announced Wednesday.
The United Parcel Service agreed to pay the $4 million after allegations that its employees falsified records relating to next-day delivery for service for government customers, Healey said.
Fourteen states and three cities — Chicago, Washington and New York City — will share in the settlement.
The alleged deceptive practices by certain UPS employees resulted in premium-priced packages that appeared to be delivered by their guaranteed next-day delivery when, in fact, they were not, the statement from Healey’s office said.
“We allege this company improperly profited off of Massachusetts taxpayers for more than a decade by recording inaccurate overnight delivery times for government services,” Healey said. “Today’s settlement will correct this unlawful conduct and ensure compliance moving forward.”
Another allegation resolved by the agreement is that from 2004 to 2014, according to the Massachusetts AG, “UPS employees applied inapplicable or 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, Healy, said, the government customers were unable to claim or receive refunds for the late deliveries.
Along with Massachusetts, states joining in the Wednesday’s settlement are California, Delaware, Florida, Hawaii, Illinois, Indiana, Minnesota, Montana, New Mexico, New York, North Carolina, Tennessee, and Virginia.
A whistleblower filed a lawsuit that led to the settlement, according to the AG. As reflected in the agreement, UPS has also instituted remedial training, monitoring, and reporting compliance programs to address any potential delivery failures or policy violations, she said.
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