A new consumer class action has been filed against shipping giant UPS, alleging that the company overcharges its customers for “declared value coverage” (i.e., shipping insurance) on the packages it delivers. The case was filed on December 27, 2013 in the U.S. District Court for the Eastern District of Michigan.
The complaint alleges that UPS offers declared value coverage to its customers for $0.85 per $100 in value, with the first $100 in coverage being offered for free. But, plaintiffs alleged that when customers would purchase additional declared value coverage (say, $350 in coverage), UPS would charge for the supposedly “free” first $100 in coverage. The complaint alleges claims for breach of contract, unjust enrichment, violations of Michigan’s Consumer Protection Act, and violations of the federal RICO statute for permitting allegedly “fraudulent charges” to be transmitted via wire and mail.
The case is Sivak et al. v. United Parcel Services Co., No. 2:13-cv-15263-GER-RSW, and has been assigned to Judge Gerald Rosen. The purported class is represented by Andrew McGuinness and Complex Litigation Group, LLC. Counsel for UPS has not yet been identified.