Brown's Platinum Shield Association Goes To Head of Class
The 2001 acquisition of Mail Boxes, Etc., Inc. by United Parcel Service and the resulting conversion of more than 3400 Mail Boxes Etc. units to The UPS Store brand continues to be a source of litigation between UPS and former MBE franchisees. A California appellate court has certified a national class action brought by current and former MBE franchisees who have joined together to form the Platinum Shield Association according to
this article. The suit alleges that UPS withheld information from MBE franchisees on tests of the new business model when trying to convert them to The UPS Store brand. The stakes in the newly certified class action are important to both sides. If the franchisees are successful, class members would have the opportunity to rescind their UPS Store contracts and seek related damages. UPS has been challenged by franchisees recently relating to aspects of the business model, including allowing customers to print labels and pay online and drop off for free at The UPS Store locations (see
earlier blog posting), an inaccurate measurement system resulting in back-charges to franchisees for higher shipping costs (see
earlier blog posting), and policies that require franchisees to deliver alcohol and pornographic materials (see
earlier blog posting).
Posted by franchiselawblog at October 22, 2007 12:24 PM