The Civil Justice System Holds FedEx Accountable

In 2012, an email was unsealed regarding FedEx’s practice of “systematically overcharging” customers by billing businesses and government offices at higher residential rates. Alan Elam’s email said, “My belief is that we are choosing not to fix this issue because it is worth so much money to FedEx.” He went to three superiors, saying that “This is a huge class-action lawsuit waiting to happen.”

Eventually, American consumers did take action. However, FedEx argued that online, in a 170 page document, there was a clause saying that the claim had to be presented internally before consumers could file suit. It also claimed that the document contained a class action waiver, preventing the type of suit it expected to happen.

Thankfully, consumers prepared for trial and uncovered documents about the pervasive practice of overcharging. In the end, the civil justice system revealed the truth and FedEx settled the case.


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