April 03, 2006
BS Association Sues
The Brown Shield Association, a group of about 300 UPS Store franchisees, filed a class-action lawsuit in Los Angeles Superior Court against United Parcel Service, Inc., its subsidiary Mail Boxes, Etc., Inc., and other related defendants. This article reports that the franchisees claim UPS is undercutting their profits by offering cheaper rates to UPS’s direct-pickup customers and imposing burdensome requirements on franchisees. The franchisees allege, among other things, intentional misrepresentation, concealment and breach of contract. They seek compensatory and punitive damages, attorney’s fees and costs. Robert Shapiro, a member O.J. Simpson’s “Dream Team,” is representing the franchisees.