July 4, 2012
OEM required to pay back overcharges on copier services to Washington state government.
Following an anonymous tip off to the Washington Attorney General’s office in 2009 claiming that Ricoh’s subsidiary, IKON Office Solutions, had overcharged on copier services, Ricoh are to pay back $4 million (€3.1 million) to the state government, reports The Olympian.
The OEM has a $17 million (€13.5 million) a year contract with the state for supplying copiers, which expires next April. The $4 million settlement is purportedly based on a “sampling of contract sales” and covers charges against IKON that date back to 2007. However, Department of Enterprise Services spokesperson Steve Valandra noted that Ricoh “stepped up and did the right thing” once the overcharges were realised.
According to the article, the settlement money is expected to “go back into state agencies and local governments that participated in the state’s contract for copier services and were overcharged”.
Steve Bissey, National Director of State and Local Government Sales for Ricoh USA commented on the settlement : “We are grateful to resolve this issue and take these matters very seriously. Since learning of this issue, we have worked closely in cooperation with the State of Washington to identify the problem and find an appropriate solution. We feel confident that we have taken the steps necessary to provide greater transparency to our sales and invoicing procedures in the future.”
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