Source: Ken Wolter / Shutterstock.com
Online retailer Amazon is being sued in federal court over alleged unfair contract terms and outstanding shipping fees.
According to legal, regulatory and business research firm LexisNexis, the company filed a suit with a Central California federal court in late April, claiming that Amazon owes more than $2.9 million in outstanding shipping fees and has used its economic power to “bully” carriers into agreeing to unfair contract terms.
Furthermore, the suit claims that Amazon reneged on its 2016 oral contract with Central Freight Lines to pay additional fees for large packages that were not originally covered by the original shipping agreement.
The Waco, Texas-based LTL carrier first entered into a contractual agreement with Amazon in 2011 and renewed the agreement annually through 2016, according to an article on the lawsuit from local newspaper the Waco Tribune-Herald.
Central Freight Lines operated in the Central California region while under contract with Amazon, and is requesting the court award it owed payments, interest on those payment, court costs and attorney fees.
Amazon has been the defendant in several court cases in recent months regarding similar concerns over contracts, misclassifications and undeclared shipments as it has endeavored to expand its internal logistics operations.
The company has been building its own network to supplement the capacity of traditional parcel carriers like UPS and FedEx, leading to speculation it may one day offer such services to shippers in direct competition with those same carriers.
