Finance General News

United Parcel Service to pay $8.4 million to settle overcharging probe

UPS van

United Parcel Service Inc. will pay a sum of $8.4 million to settle overcharging probe to the United States. The US Justice Department made the announcement on Friday in relation to the allegation against UPS for charging high prices from federal agencies for delivering their packages.

The US government said that UPS violated the terms in a General Services Administration (GSA) contract which needs the package delivery service provider to allow certain discounts to federal agencies. This led to the agencies being overcharged during the time period between 2007 and 2014. 

Assistant Attorney General of the Civil Division of the Justice Department, Jody Hunt, said that parties who are part of a contract need to be in line with the pricing terms of the GSA. He added that the settlement received from UPS will set an example showing that the government will keep check of contractors that do not comply with GSA contract.

The United Parcel Service said that it was alleged because of the different interpretations of the contract. It added that the settlement will be confined to the contract and that it continues to support the work done by the government.