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On Time Delivery Guaranty Gotchas

  UPS, and to a lesser extent Federal Express, got black eyes this past holiday season when thousands of packages were left undelivered in time for Christmas.

Some retailers like Amazon, Kohl’s, and Walmart promised to make peace with their customers by variously offering shipping refunds, gift cards, or complete refunds. But what about UPS and FEDEX themselves?

Both companies have on-time guarantees.

For UPS, air shipments are guaranteed throughout the holiday season. But, if you used UPS Ground service, they have conveniently excluded the two weeks before Christmas:

*MOUSE PRINT:

UPS guarantee

Federal Express on the other hand, appears to have left their full money back guarantee intact.

FEDEX guarantee

For overnight deliveries, their policy is generous:

“FedEx offers a money-back guarantee for every U.S. shipment. You may request a refund or credit of your shipping charges if we miss our published (or quoted, as in the case of FedEx SameDay®) delivery time by even 60 seconds.”

Wow, even if they are only a minute late you get back your money. Wow, again.

In small type, however, the customer is referred to Fedex’s “terms and conditions” and ground tariff. For both overnight express and ground services, their money back policy begins this way:

*MOUSE PRINT:

“We offer a money-back guarantee for our services. This guarantee can be suspended, modified or revoked at our sole discretion without prior notice to you.” [emphasis added]

So they have this great policy, but tuck into the fine print that they can suspend it at will. Nice, huh?

Sure enough, FEDEX created a special holiday money back guarantee . For FEDEX Ground shipments, they invoked that weasel clause just when it might be needed most.

*MOUSE PRINT:

“The money-back guarantee for FedEx Ground® and FedEx Home Delivery® services will be suspended temporarily for packages tendered during the 14 calendar days before Wednesday, Dec. 25, 2013 (Wednesday, Dec. 11, through Tuesday, Dec. 24).”

And for FEDEX express services, they give themselves an extra 90 minutes to make on-time deliveries, just like UPS.

The company issued a statement after the big media uproar about packages being delivered late (primarily by UPS), saying:

“Every single package is important to us, and we will continue to work directly with customers to address any isolated incidents.”

The bottom line is that these companies have tried to absolve themselves of on-time delivery responsibilities, and have been relatively silent about how they would make good for disappointed shoppers.

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When Shipping Costs More than the Product

MrConsumer is always on the lookout for a deal on iPhone accessories for an Apple-loving friend.

This crazy low-priced email deal for a dock good for either the Apple 4S or 5S looked like a steal:

$5 dock

Clicking through, yep, it’s really $5. But, only if you scroll down toward the bottom of the page once you are on the seller’s website, do you see the catch:

*MOUSE PRINT:

$5 dock

If you happened not to scroll down to see that shipping was $7 extra per dock, and just clicked “buy this deal,” you would not have known the real total cost of your purchase until you went to redeem the voucher this company sends out.

*MOUSE PRINT:

$5 dock order form

Nowhere on the order form does it inform the customer of the $7 shipping charge. Is it any wonder that the shipping cost is not well-disclosed? After all, a $7 shipping fee for a $5 item kills the deal.

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Kleargear.com: Complain About Them, Get Dinged $3500

An Internet seller of novelties, gadgets, and toys found a unique way to discourage customers from writing negative reviews about the company. It threatened to bill customers $3,500 for taking any action that negatively impacted the company’s reputation or products.

Jen Palmer and her husband found out about this policy the hard way when she posted a complaint about the company online after waiting over 30 days for her order:

KlearGear story
Watch KUTV TV news video

Three years after she posted the complaint, her husband received a bill for $3,500 as a penalty for his wife having posted the complaint online, and his nonpayment of the “fine” was reported to the credit bureau.

How did the company make known to customers they could suffer these consequences for exercising their constitutional right to free, truthful speech? The provision was tucked in the “terms of use” section of the website.

*MOUSE PRINT:

KlearGear terms

The company defended its practice to the TV station, but curiously that penalty clause has now disappeared from the company’s website.

Nothing like a little media attention to an outrageous practice to bring people to their senses.