OneService Protests FedEx Price and Service Changes


October 24, 2003

OneService Protests FedEx Price and Service Changes

OneService, an El Segundo, CA, risk management specialist and insurer that transports valuables in the jewelry industry, asked its clients to stop using Federal Express for shipping jewelry, due to new FedEx rate increases and service option changes. OneService has also filed papers in U.S. District Court, Central District of California, seeking a preliminary injunction and damages against FedEx for alleged violations of federal antitrust laws and California unfair competition laws. The preliminary injunction decision on whether to stop the FedEx actions is expected on Nov. 4.

FedEx notified OneService of its plan to terminate its existing contract, raise prices and change service options on Sept. 17. In a statement, One Service said it believed FedEx's actions will result in significantly higher costs and reduced service levels to the jewelry industry. David Rocha, senior vice president of Jewelers of America, representing 10,000 retail members, agreed. "FedEx's attempt to impose these costs and restrict services just before the busiest period of the year will hurt jewelers and the facilitators who serve them."






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