Office Depot

Last edited by Ian Elwood on June 12, 2008 - 9:50am

Company Snapshot:

Office Depot is the second largest office supply and products retailer (behind Staples). The company has over 1,600 locations globally and opened its first Florida store in 1986. Multiple states have investigated or canceled contracts with Office Depot for various questionable pricing schemes.

Ownership status:

Publicly traded

Number of employees worldwide:

49,000

Chief executive officer:

Steve Odland

Website:

Office Depot

Tel:

1-800-463-3768

Fax:

1-800-685-5010

Corporate accountability

Tax issues:

In 2004, Illinois Attorney General Lisa Madigan announced that Office Depot and its affiliate Viking Office Products, along with Wal-Mart and Target had agreed to pay the state more than $2.4 million in back taxes they failed to collect on Internet sales. ("Office Depot, others to pay $2.7 million in back taxes," South Florida Business Journal, 12/13/04)

Anti-competitive and consumer protection:

In 1997, the Federal Trade Commission (FTC) rejected a proposed merger between Staples and Office Depot, the # 1 and # 2 office supply sellers, concluding that it would "violate antitrust laws and lead to higher prices for office supplies."

"The Commission said that the $4 billion acquisition would allow the combined firm, which would have approximately 1,000 superstores, to control prices for the sale of office supplies in more than 40 markets throughout the United States."

On June 6, 2008, the Palm Beach Post reported that Florida's attorney general began investigating Office Depot for alleged "bait-and-switch" tactics in its office supplies contract with state and local agencies, after allegations were raised by a former employee. ("State Probes Office Depot Pricing," by Lori Becker.) In addition:

In May 2007, the North Carolina state auditor reviewed its contract with Office Depot and found pricing errors. In response, Depot credited the state about $41,000.

The state of Georgia canceled its $40 million, 11-month-old contract with Office Depot in February, saying the retailer frequently mispriced items. An analyst hired by independent office products dealers estimated that the state was overcharged by more than $1.2 million; an auditor hired by the state said the errors totaled about $200,000.

California officials launched an audit in March in response to concerns that the state was overpaying. State legislators questioned company executives last month about the concerns.

The Nebraska state auditor said in April, 2008 that Office Depot had overcharged by as much as 400 percent on some items.