Denver, CO: United Parcel Service (UPI) is facing a federal RICO class action based on allegations that the courier company has charged customers a premium to ship packages by air, when in fact it ships the packages by truck, and that this practice has been in place for years.
The suit was filed by Arapahoe Hyundai of Denver which claims that the "Air-in-Ground" program exists so that UPS can "collect the higher price charged for air transportation while actually transporting packages more cheaply by ground," the complaint reportedly states.
"When a customer selects the level of service (air or ground) for his package, he does not know that UPS has already pre-determined whether his air package will actually be shipped by air or ground," the complaint states. "UPS does not tell the customer his air package will be shipped by ground or that he will be paying a higher price for a level of service he will not receive."
Among the compensations the lawsuit is seeking are damages for breach of contract, fraudulent inducement, fraudulent nondisclosure, and intentional misrepresentation.
