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Group of independent pallet recyclers may have a significant case against CHEP USA for what appears to be antitrust violations, unfair trade practices, and unjust enrichment. This blog serves as an open forum for all topics related to and for the reporting of such business practices by CHEP.
SUMMARY:

On a nationwide basis CHEP USA (A foreign owned multi-billion dollar pallet rental company.) is forcing its much smaller size competitors to subsidize its expansion into the U.S.  market.  CHEP with its deep pockets and its army of litigators  is forcing  the return of lost pallets without fair compensation to independent pallet recyclers.  CHEP has instituted what they call their Asset Recovery Program (ARP).  A  program in which approximately 1,900 recyclers are forced to return lost pallets that CHEP knowingly allows to leak out of their pallet network. (CHEP will issue approximately 220,000,000 pallets in 2006 and according to Elton Potts CHEP ’s Senior VP of asset management and they expect 5.6% of those to be shipped outside of their network. An estimated 90 million are in circulation in the US). Pallet Recyclers are forced to return them to CHEP (often at a loss) or face a wrath of litigation from CHEP. (Note a recent October 2006 industry survey of pallet recyclers who participate in CHEP ’s ARP….Many do so only out of fear of CHEP litigation.) PALLET ENTERPRISE RECYCLER SURVEY 9/2006

If you are a pallet recycler, or CHEP employee and have a story you would like to share with us about CHEP follow our “Case Against CHEP” link to your right or visit www.chepclassaction.com