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Courier charges leave some online shoppers fuming
Broadcast: December 5, 2000 | Producer/Reporter: Christian Côté | Researcher: Maxine Sidran

Delores Friesen of Winnipeg likes a good bargain. So when she ordered some books online, she chose to have them shipped by "ground." It's slower, but cheaper.

The books cost about $78. The shipping - by United Parcel Service was another $15. Friesen told us she thought those were the only charges she would have to pay.

Friesen was wrong. Before giving her the books, UPS wanted another $31.00.

"I initially thought that I would return the order, just refuse it, and return it," Friesen told Marketplace. "Ultimately, I decided to accept the books because I really wanted them. I decided these would be my very expensive books that I would treasure and just leave it at that."

The $31.00 Friesen paid was for a service called "clearing customs."

Delores Friesen was shocked when a courier company wanted another $31 before handing over her package - the fee was for clearing customs

When goods come across the border there may be duty and taxes due. Couriers will take care of this for you, charging what's called a "brokerage fee." You won't see the charge on items going by air because it's included in the price. The brokerage fee applies only on items shipped by ground.

"I was surprised and frustrated that I didn't know that when I ordered the books," Friesen said.

This isn't the first time UPS customers have voiced their anger at what appears to be a hidden fee.

Last year, CBC Regina and CBC Ottawa aired stories of consumers upset with the brokerage fee. At the time, UPS spokesperson Joe Tavares said, "In this case if he was not aware of it up front I can certainly appreciate his surprise."

Phil Cahly of the Canadian Courier Association adds consumers wouldn't be surprised if the stores they buy from in the U.S. told them about the brokerage fee.

Phil Cahly of the Canadian Courier Association says retailers should be telling their customers about the fees - but some are not

"There's been a large explosion in e-commerce and retailers aren't aware of customs formalities themselves. They should be telling their customers, but some aren't doing it," Cahly said.

Friesen says the book company she bought from never told her about the brokerage fee.

So we phoned the company, US PrayerTrack. A spokesperson told us they only became aware of the brokerage fee after phone calls from some angry Canadians. The spokesperson also told us UPS never explained to them the brokerage fee.

A UPS spokesperson told Marketplace their website, and U.S. rate guide, clearly state the consumer is responsible for all brokerage charges, duty and taxes. But when we asked if UPS shows clients this information, or tells its clients that Canadian customers will have to pay a brokerage fee - the spokesperson couldn't say.

"I'm glad I paid the money and chalked it up to experience," Friesen told us. "The unusual thing is that a few weeks later, just for no reason I received a cheque in the mail from ups with no explanation."

The UPS spokesperson had no explanation for the unsolicited refund either.

MORE: Getting around the fees »

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