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Franchisees Say UPS Special Policy Forces Them to Handle Alcoholic Beverages
NEW YORK, March 11 /PRNewswire/ -- Franchisees of United Parcel
Services (NYSE: UPS) today charged that UPS policies force them to take
part in the distribution of alcoholic beverages, despite potential harm to
underage customers or local restrictions against such shipments.
"As small business owners, we are very concerned about UPS' special
service for its selected customers, known as Corporate Retail Solution
(CRS)," said Joseph Wightman, an official in the Platinum Shield
Association (PSA), an organization of current and former Mailboxes, Etc.
(MBE) franchisees across the country. "CRS requires that we handle alcohol
-- specifically wine, despite the risk that an underage customer may be
assigned to pick up the shipment. I am also concerned that many of our
employees are under 21 years of age and may inadvertently be breaking the
law," he added.
"It troubles me and many of my associates that we have no say in
providing the service," Wightman said, "no matter what we think or -- in
some cases -- what local regulations might say about such a practice.
Further, UPS is putting its franchisees at grave moral and financial
liability in the event an underage recipient drinks the wine and causes a
tragic auto accident."
Wightman, whose MBE store is in Manhattan, said the CRS policy covering
alcohol was discovered recently, at the same time one of his PSA colleagues
found that UPS has a similar policy requiring franchisees to handle
shipments from Zero Tolerance Entertainment, a producer of pornographic
videos. "You have to wonder," Wightman added, "how UPS could do business
with a company whose slogan is 'Zero Tolerance For Bad Pornography' and
then claim that the company is in the apparel business."
Wightman identified the alcoholic beverage shipper as Cakebread
Cellars, a California-based winegrower and bottler. "We have no complaint
with Cakebread Cellars itself," Wightman added; "our issue is with UPS,
which seems to be developing a pattern of imposing possibly improper
business relationships on franchisees who have moral objections or may
operate in locations where these special services are illegal."
In January, PSA revealed that UPS has instructed its franchisees to use
their stores as alternate delivery locations for Zero Tolerance
Entertainment. "It puts us as franchisees in a difficult position,"
Wightman said, "and our message to UPS is that we pride ourselves on being
productive members of our home communities and hope UPS will honor that
attitude in future dealings."
PSA, whose members operate UPS/MBE franchises from California to New
York, is presently involved in a lawsuit with UPS over alleged violations
of franchise agreements since UPS' acquisition of MBE in 2001. Last year,
PSA members attended the UPS annual shareholder meeting in Wilmington, Del.
to alert UPS shareholders of the lawsuit and the allegations.
SOURCE Platinum Shield Association
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