Lawsuit Filed Against Xerox Alleges Excessive Fees, Unfair Penalties

The Rochester Business Journal reports that a California company has filed a lawsuit against Xerox, alleging that Xerox charged it “excessive and illegal fees” for service, equipment, and supplies.

The plaintiff, Eco Farm Sales, is seeking class-action status. The suit charges Xerox with breach of contract, unlawful penalties for termination, and unjust enrichment.

According to the complaint that Eco Farm Sales filed in the U.S. District Court in Rochester, New York, last week, “Xerox induces individuals and entities to contract for equipment and supply services without disclosing the true cost of such services…Xerox also buries unconscionable and self-serving contractual provisions in its fine print form contract, resulting in penalties if the customer terminates the contract before its lengthy term expires.”

Eco Farm asserts that Xerox charges “arbitrary and unreasonable termination fees, unsupported by any formula contained in the lease agreement,” the suit claims. Customers are then forced to either pay the increased fees or end the contract and pay “enormous early termination fees,” according to the suit.

The requested class includes all Xerox customers in the United States that paid a fee that was not authorized in their lease agreements since 2011, and all Xerox customers that paid a termination fee penalty in violation of their lease agreements since 2011.

According to the complaint, thousands of Xerox customers could be potential class members and the total amount of the claim could be more than $5 million.

Eco Farm also alleges that although, under lease agreements, Xerox is required to maintain equipment, “customers must wait a long time for a technician to make repairs and sometimes the technicians can’t completely repair the machine, but Xerox won’t replace the equipment.” .

Eco Farm also charges that it “was routinely charged at higher rates than called for in its lease agreement signed in June 2013.”

“In order to escape the overbilling and faulty and defective equipment, Eco was forced to tender payment of $24,609. Xerox promptly deposited the check. Xerox then provided a monthly statement showing $0 owed by Eco, thus confirming that the lease agreement had been terminated,” according to the suit.

Eco Farms is said to have stopped using the Xerox equipment related to the ended lease agreement and is waiting for Xerox to pick up. It says it received a letter from Xerox demanding $11,575.56 for the equipment, which it says it’s refused to pay.

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