BUSTED AGAIN…OFFICE DEPOT AGREES TO REPAY CALIFORNIA $2.5M

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BUSTED AGAIN…OFFICE DEPOT AGREES TO REPAY CALIFORNIA $2.5M

 user 2008-09-25 at 1:19:57 pm Views: 60
  • #20799

    http://www.bizjournals.com/eastbay/stories/2008/08/25/daily71.html
    Office Depot agrees to repay California $2.5M
    Office
    Depot has agreed to repay California $2.5 million for what state
    officials said were overpayments made to the office supply company.In a
    statement released Friday, Office Depot  said a disagreement with
    California’s Department of General Services arose over the
    interpretation of its contract relating to the discount on items
    furnished by wholesalers to Office Depot and sold by Office Depot to
    California agencies.

    “In the spirit of cooperation and customer
    satisfaction, Office Depot agreed to provide $2.5 million to the state
    as an additional discount on these items,” the company said in its
    statement. “Office Depot consistently priced these particular items for
    the duration of the contract, which Office Depot considered
    ‘off-contract’ purchases.”

    Office Depot and the DGS agreed to an
    additional discount of approximately $2.5 million, which, the company
    said, was not compensation for overcharges.The company said a review of
    20 commonly purchased items in the contract revealed that the state
    saved an average of about 30 percent over the rates Office Depot
    charges retail customers for the same items.Office Depot said the
    contract, which was set to expire on Aug. 31, has been extended until
    Feb. 28, 2009.