Written by Kristen Petrella, UPS Public Relations Manager

Answers to Questions from CBS – 5 San Francisco TV

(Regarding Sheri Garay’s Claim)

UPS Retail Access Points

UPS Retail Services provides convenient access to its Worldwide Services through nearly 70,000 global access points. Customers include consumers, small businesses, small offices/home offices (SOHOs) and dispersed workers, or "road warriors."

The UPS Store®: More than 4,300 U.S. locations, 317 international locations (Canada & India)
In addition to domestic and international UPS shipping, including freight services, The UPS Store offers black-and-white and color duplications, document finishing (binding, laminating, etc.), notary, printing services (business cards, letterhead, rubber stamps, etc.) full service packing, mailbox and postal services, office and packaging supplies and more.

Mail Boxes Etc.®: More than 1,158 locations outside the U.S., 148 within the U.S.
In 35 countries outside the U.S., the Mail Boxes Etc. name is still used, and approximately 148 U.S. franchisees continue to operate their business and shipping centers under the Mail Boxes Etc. brand

The UPS Stores offer true shipping expertise:

The UPS Store locations specialize as shipping experts whereas FedEx mainly focuses on making Xerox copies. UPS so believes in this concept of shipping expertise that most UPS Store outlets offer a Pack and Ship promise up front: if the store packs it, and the items get damaged, the claim is paid “no questions asked.”

The UPS Store franchised locations are locally owned and operated:

Our UPS Store owners are local people who have a vested interest in their community. These stores are conveniently located and shipping expertise is provided right around the corner for small business owners as well as occasional shippers. Because these store owners live and work in their communities, one could say they care even more about keeping their customers happy.

Now, here are answers to the question you originally posed, Craig.

Q: What is the status of Sheri Garay's claim for $300 of Declared Value Coverage?

A: Both of Ms. Garay’s claims have now been processed and she will be receiving a check in the amount of $328.54. One hundred dollars of this amount is being given to Ms. Garay as a goodwill payment by UPS since Step by Step was falsely portraying itself to be one of UPS’s authorized shipping outlets. UPS wants to satisfy and make Ms. Garay whole. UPS will be informing Step by Step they are not authorized to ship on UPS’s behalf.

Q: Has UPS absolutely determined that Step by Step is not a recognized UPS shipping outlet? Is UPS continuing to claim that it has been defrauded by Step by Step? How so?

A: Step by Step is falsely representing itself as an authorized shipping outlet for UPS and has been shipping packages on behalf of the public through the UPS transportation system without the proper authorization. Step by Step is not an UPS authorized shipping outlet. This means Step by Step hasn’t signed the authorized shipping outlet agreement (ASO) contract which enables them to accept packages on behalf of the public. Step by Step is a business and can only ship its own products/merchandise via UPS.

UPS must adhere to DOT, FAA and Homeland Security regulations. The ASO agreement specifies all the things an ASO can do and all the things an ASO cannot do (i.e. provides specifics about shipping dangerous goods/hazardous materials, firearms, ammunition, articles of unusual value, or articles UPS is not authorized to accept or that UPS states it will not accept as set forth in published UPS tariffs, UPS Rate and Service Guides and UPS Terms and Conditions of Service in affect at the time of shipment). Step by Step is putting UPS’s transportation system at risk. Step by Step must cease and desist shipping any packages on behalf of the public. UPS is sending Step by Step a cease and desist letter explaining this.

Q: What federal, state, or local agency oversees or regulates UPS's Declared Value Coverage? What agency or entity can a shipper complain to if their Declared Value Coverage claim is denied by UPS?

A: There are many agencies that consumers can go to with questions or concerns at both the state and federal level (a federal example is the Federal Trade Commission).UPS makes every effort to respond to customer concerns from whomever or whatever agency raises them.

Q: Consumer attorney Jim Sturdevant says: "UPS has set up a system to deny liability and deny responsibility by making the customer, who thought she was dealing with UPS, go back to the store of origin and try to demonstrate to the store that she bought the service and the property was damaged."

A: UPS flatly rejects that characterization. UPS’s customer has always been the entity or person who tenders the package to UPS. In the case of The UPS Store or some other Authorized Shipping Outlet, we have different internal, or behind-the-scenes, processes to handle claims. But you cannot equate the problems faced by Ms. Garay – dealing with a company that improperly held itself out as an authorized shipping outlet – with what her experience would have been if she went to a UPS Store outlet. In fact, most UPS Store outlets offer a Pack and Ship promise up front: if the store packs it, and the items get damaged, the claim is paid “no questions asked.”

Q: Joe Rideout of Consumer Action says: "It seems potentially deceptive to sell someone an add-on to the shipping price, characterize it as 'insurance' that will replace something that is lost or damaged, then have it turn out to be not exactly insurance at the time you have to file a claim."

A: Declared Value Coverage is not an insurance product. Declared Value is a contractual limitation of liability. Customers are provided the opportunity to declare a higher value for goods shipped with UPS. Declaring a higher value creates a different contractual liability limitation (normally it is $100) for UPS, and the customer pays a higher rate for such a higher value shipment. There is no insurance. UPS's terms and conditions provide the details of how Declared Value works, and any exemptions or exclusions.

Link to UPS’s Tariff/Terms and Conditions:

http://www.ups.com/media/en/terms_service_12312007.pdf

Declared value is functionally equivalent to acquiring insurance. We choose not to hire an insurance company to offer it, but it’s extra coverage. Now, if you’re playing a consumer education role, you should note for viewers that purchasing excess value coverage doesn’t absolve a shipper from packaging a shipment properly. Having coverage doesn’t mean you’ll get paid if you ship china without proper packing, for example.