Courtney Jorstad  |  January 28, 2014

Category: Consumer News

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Wal-Mart class action lawsuitA class action lawsuit accusing Wal-Mart Stores Inc. of improperly charging too much sales tax on items purchased with buy-one-get-one-free coupons has been removed from federal court and sent back to Pennsylvania state court.

“Pennsylvania courts are simply better positioned than this court to ascertain and then correct any violation of state tax collection laws — they are presumably more familiar with the administration of Pennsylvania tax regulations and are wholly unburdened by the TIA’s limitations in fashioning proper and complete remedies,” wrote U.S. District Judge Mark R. Hornak. “Taken together, these considerations counsel deference to the state adjudicative processes.”

Plaintiff Brian Farneth alleges in the class action lawsuit that when he purchased two cans of Gillette Fusion shaving gel at Wal-Mart and used a buy-one-get-one-free coupon, he was charged 21 cents in sales tax on both items for a total of 42 cents before the amount of the buy-one-get-one-free discount was deducted from the total bill.

The Pennsylvania man has charged Wal-Mart with charging improper amounts of sales tax, inappropriate conversion, breach of constructive trust, unjust enrichment and violating the Pennsylvania Unfair Trade practices and Consumer Protection Law.

He is seeking injunctive relief and monetary damages for himself and others he claims are owed similar refunds from Wal-Mart.

Wal-Mart argued that according to the Pennsylvania Department of Revenue, they are not supposed to calculate coupons before calculating sales tax. The large retailer wanted the class action lawsuit to stay in the federal court until the Pennsylvania tax authorities had made their decision about how the sales tax issue should be handled when coupons are used.

“Wal-Mart necessarily demonstrates that it believes that Pennsylvania law and proceedings supply an adequate (and most appropriate) remedy available for the adjudication of the relevant claims and defenses,” Hornak wrote.

The plaintiff is represented by Frank G. Salpietro of Rothman Gordon PC.

The Wal-Mart Coupon Sales Tax Class Action Lawsuit is Brian Farneth v. Wal-Mart Stores Inc., Case No. 2:13-cv-01062, in the U.S. District Court for the Western District of Pennsylvania.

UPDATE, October 5, 2018: The Pennsylvania Walmart Coupon Sales Tax Class Action Settlement website is now available!  Review settlement details and file a claim here.

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One thought on Wal-Mart Coupon Sales Tax Class Action Sent Back to State Court

  1. Wyann says:

    Is Walmart in Alabama supposed to tax on grand total before coupons or are they over taxing me? For instance I bought 2 shampoos for 1.88 a piece wich made it 3.76 used a 3.00 off coupon wich made it .76 and our tax is 10 percent they charged me .38 cent tax is this legal please help

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