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Several retailers in Pennsylvania have been accused of wrongfully charging sales tax on tax-exempt face masks and coverings during the pandemic.
Plaintiff Daniel Garcia says he was unfairly charged sales tax on purchases of protective face masks and coverings despite state regulations. Allegedly, numerous companies have violated Pennsylvania’s Unfair Trade Practices and Consumer Protection Law by charging this sales tax.
The sales tax class action lawsuit was filed against several companies: American Eagle Outfitters, Foot Locker, Kohl’s, J. Crew, The Gap, Hot Topic, Carter’s, Chico’s, Express, Francesca’s, Gabriel Brothers, Genesco Inc., Tapestry Inc., Vera Bradley Inc. and Walgreens. This includes the brand names operated by these companies, such as Old Navy and Kate Spade.
Allegedly, the company operators “knew or should have known that it was impermissible to charge or collect sales tax on protective face masks based on widely disseminated messages regarding the tax exemption for protective face masks during the state of emergency in Pennsylvania.”
Under typical circumstances, face masks would be subject to sales tax in Pennsylvania. However, under an emergency disaster declaration by Gov. Tom Wolf in March, face masks are now exempt from sales tax. This is because they are classified similar to medical equipment such as disposable surgical masks and ventilators during the pandemic.
Despite these new emergency regulations, Garcia was allegedly charged 7% sales tax on mask purchases between Sept. 26 and Oct. 22. This sales tax reportedly included a 6% state sales tax and a 1% local tax for purchased made in Allegheny County.
Garcia says he was charged unlawful sales tax by several retailers, starting with American Eagle in late September.
Allegedly, Garcia relied on advertisements from American Eagle that the protective face masks cost $14.95. Despite these representations, Garcia was allegedly charged $16 for the face mask he purchased — $1.05 over the advertised price — due to the addition of 7% sales tax. Garcia says he wasn’t aware this extra charge counted as sales tax until he looked at his receipt.
The sales tax class action lawsuit details several other situations where Garcia was allegedly charged sales tax when purchasing face masks.
Garcia says this sales tax not only violates Wolf’s emergency order, it also violates the Pennsylvania Unfair Trade Practices and Consumer Protection Law.
The companies are allegedly violating this law by engaging in “fraudulent and deceptive conduct” that “created a likelihood of confusion or misunderstanding.” Under this state consumer protection law, Garcia seeks damages of $100 per violation.
“At a time when 16% of Pennsylvanians were unemployed, these retailers disregarded Pennsylvania’s Department of Revenue and collected sales taxes on facemasks we had to purchase to go to work, attend school, and shop for groceries,” Garcia’s attorney said in a statement to WPXI.
“Through this lawsuit, our client demands an immediate stop to this practice and compensation of at least $100 for every person in Pennsylvania who paid a mask tax.”
Garcia seeks to represent Classes of consumers who purchased protective face masks from the included brand stores since March 6, 2020. Each Class includes consumers who purchased the products in question from:
- American Eagle Outfitters
- Carter’s
- Chico’s
- Express
- Foot Locker
- Francesca’s
- Gabe’s (Gabriel Brothers)
- Genesco
- Hot Topic
- Crew
- Kohl’s
- The Tapestry
- The Gap
- Vera Bradley
- Walgreens
On behalf of himself and the proposed Class, Garcia seeks damages of $100 per violation by all companies, court costs and attorneys’ fees.
Other class action lawsuits have been filed under Pennsylvania law challenging sales tax charges on various items. Earlier this month, a Giant Eagle customer filed a class action lawsuit against the grocery charge — challenging the company’s practice of charging sales tax on 5-Hour Energy products.
According to the plaintiffs, these products aren’t classified as beverages and are instead considered to be dietary supplements. This stance is supported by Giant Eagle’s own stocking of the products in the “medicine, drug and medical supply section,” the plaintiff contends. As a result, the Giant Eagle class action lawsuit says, the retailer shouldn’t charge sales tax.
Were you charged sales tax on purchases of face masks during the pandemic? Share your story in the comment section below.
Garcia and the proposed Class of purchasers are represented by Kevin W. Tucker and Kevin J. Abramowicz of East End Trial Group LLC, and Jason M. Leviton and Lauren Godless of Block & Leviton LLP.
The Pennsylvania Sales Tax Class Action Lawsuit is Daniel Garcia v. American Eagle Outfitters Inc., et al., Case No. unknown, in the Court of Common Pleas of Allegheny County, Pennsylvania.
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6 thoughts onPa. Customers Unfairly Pay Sales Tax On Face Masks, Class Action Lawsuit Says
Hot topic and Walgreens please sign me up
What about on QVC or HSN, walmart
Please add me
Paid sales tax on masks at Boscovs and Sams Club
Amazon also charged sales tax on masks, I have ordered masks 3 times & have been charged pa sales tax every time.
Unrelated I suppose but a lot of online stores are charging sales tax on clothing shipped to Pennsylvania residents. I purchased underwear for my husband online a couple of days ago and am fighting with the company now because they charged tax and they are not supposed to. Where is this money going?