Office Depot has agreed to pay Colorado $412,000 following an investigation into allegations that the company overbilled more than 100 Colorado governmental agencies and nonprofits for office supplies between January 2006 and March 2009.
According to the settlement, the state attorney general’s office investigated allegations of improper practices related to a U.S. Communities purchasing contract. Customers included cities, counties and school districts.
Colorado Attorney General John Suthers alleged that certain customers were placed on a higher-cost price plan without their knowledge or without a complete and accurate explanation of the price difference between the two plans.
Roughly 113 customers paid a total of $126,294 more than they would have on the lower-cost plan, investigators alleged.
Under the agreement, Office Depot will pay $412,000 to the state. Of that, $189,441 will be paid to the customers who were put on the higher-cost plan. The remaining $222,561 will be used for reimbursement of the state’s costs and attorney’s fees and for consumer education, and antitrust and consumer fraud enforcement.
Office Depot denied wrongdoing, and the settlement notes that it is “not to be considered an admission of violation or liability.”
Firm spokesman Brian Levine said the company was “pleased” to have resolved the matter and continues to sell office supplies to Colorado’s public sector.
Mike Saccone, a spokesman for the attorney general’s office, said he couldn’t comment on whether any other businesses are being investigated for possible overcharging. He said there are no completed investigations related to alleged overbilling by other businesses.
In June 2010, the Florida attorney general’s office reached a $4.5 million settlement with Office Depot regarding allegations that the company overcharged Florida agencies for office supplies.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
