ATLANTA-based United Parcel Service (UPS) has to pay US$25 million after being accused of making false claims for next day, overnight delivery between 2004 and 2014 to hundreds of federal agencies.
Prosecutors charged UPS "concealed its failure to comply with its delivery guarantees, thereby depriving federal customers of the ability to request refunds for the late delivery of packages," American Shipper reported.
The department explained "the government alleged that UPS knowingly recorded inaccurate delivery times on packages to make it appear that the packages were delivered on time, applied inapplicable ‘exception codes" to excuse late delivery (such as ‘security delay," ‘customer not in? or "business closed", and provided inaccurate "on-time" performance data under the federal contracts.
The express carrier provides delivery services to hundreds of federal agencies via contracts with the General Services Administration and the Defence Department's Transportation Command.
Source : HKSG.