San Francisco audit finds Office Depot overcharged city by at least US$5.8M for office supplies; retailer disputes findings

Dec 22, 2009 — IndustryIntel

LOS ANGELES, December 22, 2009 (IndustryIntel) — A new audit finds that Office Depot overcharged San Francisco at least US$5.75 million for office supplies during a four-and-a-half-year period, but the national chain says that the numbers are wrong and it has not given any indication it will pay the city, reported the San Francisco Chronicle on Dec. 19.

The city’s audit indicates that the overcharges were incurred when Office Depot failed to five San Francisco’s government the agreed-upon discounts and made unauthorized price increases.

City Controller Ben Rosenfield said that he is certain the city is owed the money.

However, Office Depot spokesperson Jason Shockley said that the company believes the report is flawed, subjective and unfair, the Chronicle reported.

Dennis Herrera, attorney for the city of San Francisco, is reviewing the audit and considering the options, said spokesperson Matt Dorsey.

Office Depot is facing overcharging allegations across the U.S., including those involving the states of California, Georgia, North Carolina and Nebraska, according to San Francisco’s report.

In March, a Berkeley audit found more than $250,000 in overcharges from Office Depot, reported the Chronicle.

Last year, Office Depot agreed to a $2.5 million refund for California after an audit found that expected discounts were not made for items purchased. That came after a separate $2.5 million settlement that Office Depot agreed to pay nine California counties in 2007 for allegedly overcharging customers in stores.

The primary source of this article is the San Francisco Chronicle, San Francisco, California, on Dec. 19, 2009.

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