Contract pricing

Many companies use a contract pricing structure that buries deep within the small print allowance for automatic price increases without discussion of notification. And then there are the more contentious rolling contracts that are particularly troublesome for small producers.

We have raised the issue previously on the Clinical Waste Discussion Forum – several items appear way back in the archive files, and more recently here.

This time, the tables are turned and in the US, Stericycle has ‘agreed’ to a $2.4 million settlement after overcharging more than 1,000 local agencies, including schools, police departments, rescue squads and jails.

Stericycle charged automated price increases for its services and didn’t give the local agencies notice of the changes. He said the increases violated the company’s contract with the agencies. The New York settlement is part of a national whistleblower complaint filed in federal court in Chicago.

Under the settlement, the local governments will receive payments from Stericycle, a total of $820,000 in all. The company also agreed to discontinue its automatic increases.

As always, caveat emptor.

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