Anna Bradley-Smith  |  April 16, 2021

Category: Fees

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DHL Overcharges Customers With ‘False’ Processing Fees, Class Action Lawsuit Alleges

Courier company DHL disguises processing fees as import taxes, overcharging customers in an “unlawful scheme,” a new class action lawsuit alleges.

A nationwide class action filed in B.C. Supreme Court last week by lead Plaintiff Gayle Vallance alleges that DHL has been making “false, misleading and deceptive” claims about fees and profiting off its misrepresentations, reports CBC.

Vallance said that she paid DHL $98 to ship two books on fabric weaving from the United Kingdom, and when they arrived in Canada she was told she had to pay $33.16 in “duties and taxes” before they were delivered. However, after numerous inquiries to the company, Vallance, a retired school teacher, found that $17 went to DHL as a processing fee.

The class action claims that DHL misrepresents its own processing fees as government import and tax fees by sending email to customers with the subject line “IMPORT DUTY/TAX PAYMENT,” that advise customers to pay the so-called tax or risk losing their parcel, reports CBC.

“I don’t think anybody has any difficulty paying for taxes and duty that’s properly owing and payable,” Vancouver lawyer Scott Stanley, who is representing Vallance, told CBC.

“It’s when there’s additional fees that aren’t clear where people get their backs up.”

Stanley said DHL was already being paid to deliver the packages, and the processing fee wasn’t transparent.

“DHL was unjustly enriched by its conduct,” says the claim.

The class action says that DHL’s conduct breaches the federal Competition Act and “constituted an unfair business practice contrary to consumer protection legislation” across Canada, reports CBC. “DHL was unjustly enriched by its conduct.”

DHL spokesperson Daniel McGrath told CBC that the company does not comment “on active legal matters.”

Vallance’s class action lawsuit comes a month after a story was published on CBC about a Calgary woman who experienced the same shock at the courier’s “hidden” processing fee. After the story was published, a number of other DHL customers came forward with the same complaint.

Vallance wants to represent a nationwide Class of DHL customers who have paid DHL processing fees, and who “sustained loss and damage” from paying those fees. The class action is also seeking payment for “stress and anxiety,” reports CBC.

It’s not just courier companies that face legal action over delivery fees.

In the United States a number of food delivery apps have been hit with class action lawsuits over hidden delivery fees. In March, a class action was filed against Chipotle by Plaintiff John Dundon, who claims that the Mexican food chain adds a 10% “service charge” to delivery orders, effectively making its ‘free’ or ‘$1’ delivery advertisements untrue and misleading.

Do you use DHL for deliveries? Have you ever been surprised by the company’s import tax rates?

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39 thoughts onDHL Overcharges Customers With ‘False’ Processing Fees, Class Action Lawsuit Alleges

  1. Linda says:

    I had a delivery of a small Christmas gift by DHL and asked to pay extra fee of 26$ in December 2021. We contacted DHL and was told that you have to pay the fee before delivery.

  2. Annette C says:

    Caught by DHL again today (last time was a year ago) paying $33 ransom to get my package. I will never again buy from a company that uses DHL.

  3. sanyc says:

    I ordered some paintbrushes off amazon to finish a competition with. I paid like 20$+ in shipping costs, and now I have to pay it again, including 17$ for the “convenience” of them doing what I paid them to do (and now that they have my package I have no choice but to pay) . I’m not a lawyer but that seems fraudulent, if it’s a standard fee why is it not disclosed on purchase? They have no problem calculating the shipping cost. Bullshit.

  4. Mario says:

    Ill actively avoid ordering anything from someone if it’s Dhl delivering it, they are the only delivery company I’ve ever used that has extra fees after the fact every time. I paid $35 for shipping why am I paying another $35 to clear my stuff from customs, what did I pay you for originally? Also the notification for having to pay is almost non existent, my tracking just said “on hold” with zero explanation, I had to scroll all the way back through tracking to find one tiny notification with no phone # or link to the part of the site where you pay.

  5. Russel F. says:

    Same thing for us – November, 2021. We needed to import a tiny circuit board from US seller, $70 US cost. DHL held the package hostage, until we paid $24 in “taxes owing”, which after downloading documents, we determined was $17 in extra, hidden fees to DHL. HST paid was $5.11. And we paid $38.47 to seller, as DHL shipping fee – only to have DHL hold our part hostage, until we paid their added fee. DHL is a scam. We source product via Amazon, and when we pay vendor the shipping costs, product is *always* delivered direct to our door (ie. import taxes are paid ).
    DHL is an abusive and dishonest entity, taking advantage of small business folks and consumers. This proposed lawsuit has real merit. The hidden DHL fee is an abusive trick, where paid-for shipments are held hostage to extract funds from folks illegally. It is the same as a mover, who demands an extra fee before he unloads your household goods from his truck, outside the front of the house you have moved to.
    Our $70 (US) circuit board (a small SSD drive array), will have cost us over $174 Canadian, if and when the DHL people actually deliver the damn thing.
    Our understanding is that if we had simply shipped via US Post Office (and Canada Post), we would only have had to pay the $5.11 HST owing.
    This kind of abusive fee-scamming by a courier company, at our border with USA, seriously hurts Canadian business and commerce, and correction needs to take place. It actively and effectively discourages and degrades our commercial and economic effectiveness as a nation.
    And it’s just hard-core nasty.
    The abusive DHL folks will not even deliver and accept cash or credit card at the door. You have to navigate their (broken) website or use a telephone payment procedure.
    This is just crap, given that we have already paid them almost $40 in shipping fees, for a tiny part that was being sent only 200 miles.
    Really nasty, abusive “hidden fee” scam business. The really nasty trick, is the product hostage – taking. It took us *days* to actually get through to the SOBs, to pay their stupid extra fee.
    We import lots of bits and pieces of hardware, but it is only DHL that jacked us up like this.
    Good luck with the class-action. If it gets dismissed, then re-file in a different Province. This needs to be addressed.

    1. Tim says:

      These problems are minor compared with the stress I suffered and continue to suffer from DHL in a different country! They refused to clear my parcel claiming it contained illegal goods, insisted on my using a broker, threatened I would lose it in 20 working days, refused to give me the name of a broker. I then spent nearly £150 on a broker only to receive false paperwork with inflated taxes. and no goods. Eventually after trawling the net I found a customs officer’s email address. Then everything changed and DHL sent me paperwork for authorisation of their in-house brokerage however after paying them £230, they have failed to send me any detailed invoice despite repeated requests, all I have is a total figure! The goods however after 6 weeks from arrival date have finally been delivered by a third party courier. Never again DHL! They totally suck and they all sing from the same hymn book!

  6. JM says:

    I was asked to pay 19.21 CAD for the home made sweets sent by Inlaws

  7. Danny says:

    Please add me to this!
    I am being asked to pay an additional $19.22 CDN OVER AND ABOVE shipping ($12 BP) and taxes ($38.70 CDN)
    that I am legally required to pay for goods and services coming into Canada from the United Kingdom!!!

  8. Mike says:

    I’d like to join this suit as well

  9. Alek Champion says:

    Please include me. I have shipped with DHL from different countries and keep finding high charges and taxes (vat). I am also concerned with charges changing rates within days.

  10. Angie says:

    I would like to know how to join this too, please. I’ve kept all my receipt emails, and charging a $17 fee for $3 txes and duty is insane.
    No other company has been doing this on EVERY package.

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