NY reaches settlement with Office Depot

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Attorney General Eric Schneiderman today announced a $475,000 settlement with Office Depot, Inc., for improperly overcharging 504 local government and agencies around the state for office supplies.

Eric SchneidermanOne of the 10 highest settlements went to Graham Windham, a child welfare agency in Hasting-on-Hudson in Westchester County for $4,241.

The state’s Office of General Services in 2008 entered into a contract with Office Depot to sell state OGS customers Office Depot supplies for a price at least as low as supplies sold to the United States General Services Administration.

The attorney general’s investigation found Office Depot did not ensure compliance with the agreement and overcharged OGS customers.

“By failing to honor their contract, Office Depot profited at the expense of New York taxpayers, local governments and state agencies,” Schneiderman said in a statement.

Office Depot, Inc. did not immediately respond for comment.

As part of the settlement, every impacted OGS customer will receive a check from Office Depot for the amount they were overcharged and the state did not renew its contract with Office Depot for 2014.

The Fraud and Recovery Act allows the state to collect triple the damages and collect between $6,000 to $12,000 per violation from corporations or people who defraud the government.

Local government and agencies received settlement amounts ranging from $50 to more than $14,000. Connetquot Central School District and Longwood Central School District in Suffolk County received the highest settlements of $14,141 and $11,345, respectively.

“At a time when municipalities across the state are struggling to meet tight budgets and fund critical services, my office will do everything in its power to ensure venders honor their commit to conduct fair and honest businesses with our communities,” Schneiderman said in a statement.

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