UPS Store Overcharges for Notary Services New Jersey Class Action

The UPS Store, Inc. (TUPSS) offers packaging and delivery, plus other services, including notary services, at 161 locations in New Jersey. The complaint for this class action brings suit against TUPSS and a “representative defendant,” one of its many franchisees about these notary services. The complaint alleges that TUPSS requires its franchisees to charge double the amount permitted for notary services by New Jersey law.

TUPSS keeps a tight rein on its franchisees. According to the complaint, it gets involved with “site selection and lease negotiations, financing, training, managing day-to-day operations, networking, and ongoing management.” It also “insists on implementation of its specific business plan, a copy of which is attached to the complaint as Exhibit A.

The complaint quotes this business plan as saying, “Franchise opportunities rely on by-the-book execution of a business plan, adherence to proven systems of operation and a willingness to follow direction. To get the most out of the franchise business model, resist the urge to innovate and make changes to the business. Not only does it violate the franchise agreement, but it could jeopardize the brand reputation and put your investment and that of your fellow franchisees at risk.”

Given this attitude, the complaint claims that the “Representative Defendant acts as an agent and servant for TUPSS,” because it “acts on behalf of TUPSS and subject to control by TUPSS.”

TUPSS advertises notarial services on its website and sets prices for the notary services of its stores. “Upon information and belief,” the complaint alleges, “the charge for a document notarized at a location operating as The UPS Store in New Jersey is $5.00.”

However, the complaint claims that the charge set for such services in New Jersey is $2.50. The complaint quotes from New Jersey law, as well as the New Jersey Notary Public Manual, to show that in all but two cases, no higher price is listed except in the case of “grantors in the transfer of real estate,” or for “mortgagors in the financing of real estate,” “regardless of the number of such services performed in a single transaction[.]”

Despite this $2.50 cap on notary services in New Jersey, TUPSS sets its own price for notary services at $5.00. The complaint suggests that this price applies to all TUPSS locations in New Jersey. It contends, “TUPSS is liable for actions by its franchisees, specifically when it controls and/or has a right to control the actions giving rise to the violation.”

Two classes have been defined for this action:

• The Plaintiff Class is all natural persons who paid fees to TUPSS for notary services in New Jersey that were higher than the maximum set by New Jersey law.
• The Franchisee Class is all persons and business entities of every kind who owned and/or operated a UPS Store in New Jersey that provides or provided notary services to the public.

Article Type: Lawsuit
Topic: Consumer
Tags: Fraud, Overcharges for Services, Unfair Services