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Courier company DHL disguises processing fees as import taxes, overcharging customers in an “unlawful scheme,” a new class action lawsuit alleges.
A nationwide class action filed in B.C. Supreme Court last week by lead Plaintiff Gayle Vallance alleges that DHL has been making “false, misleading and deceptive” claims about fees and profiting off its misrepresentations, reports CBC.
Vallance said that she paid DHL $98 to ship two books on fabric weaving from the United Kingdom, and when they arrived in Canada she was told she had to pay $33.16 in “duties and taxes” before they were delivered. However, after numerous inquiries to the company, Vallance, a retired school teacher, found that $17 went to DHL as a processing fee.
The class action claims that DHL misrepresents its own processing fees as government import and tax fees by sending email to customers with the subject line “IMPORT DUTY/TAX PAYMENT,” that advise customers to pay the so-called tax or risk losing their parcel, reports CBC.
“I don’t think anybody has any difficulty paying for taxes and duty that’s properly owing and payable,” Vancouver lawyer Scott Stanley, who is representing Vallance, told CBC.
“It’s when there’s additional fees that aren’t clear where people get their backs up.”
Stanley said DHL was already being paid to deliver the packages, and the processing fee wasn’t transparent.
“DHL was unjustly enriched by its conduct,” says the claim.
The class action says that DHL’s conduct breaches the federal Competition Act and “constituted an unfair business practice contrary to consumer protection legislation” across Canada, reports CBC. “DHL was unjustly enriched by its conduct.”
DHL spokesperson Daniel McGrath told CBC that the company does not comment “on active legal matters.”
Vallance’s class action lawsuit comes a month after a story was published on CBC about a Calgary woman who experienced the same shock at the courier’s “hidden” processing fee. After the story was published, a number of other DHL customers came forward with the same complaint.
Vallance wants to represent a nationwide Class of DHL customers who have paid DHL processing fees, and who “sustained loss and damage” from paying those fees. The class action is also seeking payment for “stress and anxiety,” reports CBC.
It’s not just courier companies that face legal action over delivery fees.
In the United States a number of food delivery apps have been hit with class action lawsuits over hidden delivery fees. In March, a class action was filed against Chipotle by Plaintiff John Dundon, who claims that the Mexican food chain adds a 10% “service charge” to delivery orders, effectively making its ‘free’ or ‘$1’ delivery advertisements untrue and misleading.
Do you use DHL for deliveries? Have you ever been surprised by the company’s import tax rates?
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39 thoughts onDHL Overcharges Customers With ‘False’ Processing Fees, Class Action Lawsuit Alleges
I started using DHL for business shipping during the pandemic, and was mostly satisfied until recently. This year I had a couple issues, including egregious ad hoc customs charges placed on one order.
Before shipping anywhere I check all import charges for that country, no exceptions. So when hit with a 200%(!) fee on a shipment to India when the tax is supposed to be 10% I know the company is behaving illegally.
Complaints are met with standard form-letter type responses, denying everything.
What can I do about it? Frankly nothing, except to have nothing to do with this company in the future.
I have been purchasing items from the state and each time DHL charges me import duty taxes and if I purchase the similar items from someone that doesn’t use DHL I don’t get to pay some duty taxes! Rhys how I found out that DHL was steeling from people with their duty taxes! They owe me so much money! We need help to put a STOP to this SCAM!!!
I would love to help put a stop to DHL’s unscrupulous business. DHL is trying to gauge me right now. I just paid $168 for shoes from GOAT and was told that shipping charges would be $41. Days later I get a surprise email from DHL that says if I don’t pay over $79 more to them I won’t get my package and GOAT refuses to issue a refund. It’s such a scam.
I also have a $77 bill from DHL after they had the nerve to charge me for “taxes and duty” on personal items I forgot in a hotel room that had returned to me. It cost me $100 to mail the package and then a $77 additional bill arrived in the mail. DHL should be banned from doing business in Canada.
I expecting an order from Australia. $129.00 was the total cost of the purchase. I just paid DHL $48.00 so they will release my parcel for delivery. This is outrageous. I have complained to both DHL and the shipper. It’s so frustrating as there is no option to dispute.
I am being asked to pay $327 dollars as an “import duty tax”, and if i don’t, my order from Hello Molly will be sent back. I was not aware of this before or else I would have never placed my order. This is absurd.
I too was charged the fraudulent duty and taxes to the tune of 70 dollars and am really pissed off. When I said that I would pay upon delivery I was refused which is a pretty effective way to make their criminal scam effective by holding your item for ransom! DHL is stealing an extra 16% over and above the 40 dollars already paid for shipping. I too am very angry.