Republic Services Facing Class Action Over ‘Unlawful’ Rate Increases, Fuel Recovery Fees

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An Arkansas law firm alleges in a proposed class action that Republic Services has systematically overcharged its customers through two “separate, but related coordinated schemes” involving unlawful, automated rate increases and excessive, arbitrary “fuel recovery fees.” 

The 22-page lawsuit alleges that the waste disposal company has fraudulently entered into standard form contracts with small business customers despite knowing that it will increase the agreed-upon prices without justification. Moreover, the “fuel recovery fees” tacked onto customers’ bills have no relationship to Republic’s actual or increased fuel costs, the complaint alleges. 

In practice, Republic Services, one of the largest waste disposal companies in the country, uses its fuel recovery fees to generate extra profits at the expense of customers while deceiving them into believing that the charge is legitimate, according to the case. 

“Republic has done no legitimate analysis to determine the proper amount of the ‘Fuel Recovery Fee’ in connection to its increased or actual fuel costs,” the lawsuit alleges. 

Per the suit, Republic’s customer contracts restrict the company’s ability to increase rates to five specific circumstances. Although the defendant implements rate increases purportedly to adjust for any increase in the Consumer Price Index for all urban consumers, the lawsuit claims Republic’s rate increases “far out-strip the increases (if any) in the consumer price index.” 

According to the complaint, Republic’s rate increases for waste disposal services often exceed 50 percent over the course of a contractual term, and greatly exceed any increases in the consumer price index. 

“Republic unilaterally imposes automated increases at least annually, and often more frequently,” the case says. “Upon information and belief, these rate increases are directed by Republic’s corporate officers as part of a broad strategy to increase profit and are carried out through an automated process using Republic’s customer relationship management system.” 

The suit looks to cover all entities in Arkansas who, from June 1, 2020 to the present, paid Republic Services a “fuel recovery fee” and: 

“All entities who reside in Arkansas who entered into a written contract with Republic that provides ‘Company may, from time to time by notice to Customer, increase the rates provided in this Agreement to adjust for any increase in: (a) disposal costs; (b) transportation costs due to a change in location of Customer or the disposal facility used by Company; (c) the Consumer Price Index for all Urban Consumers; (d) the average weight per cubic yard of Customer’s Waste Materials above the number of pounds per cubic yard upon which the rates provided in this Agreement are based as indicated on the cover page of this Agreement; or (e) Company’s costs due to changes in Applicable Laws’ and who paid rates to Republic in excess of those originally listed in the written contract from June 1, 2020 to the present.” 

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