7-Eleven, McDonald’s, Walgreens Face Soda Tax Class Action Lawsuits

7-Eleven Inc., McDonald’s Corporation and Walgreens Boots Alliance Inc. are facing class action lawsuits filed by Illinois consumers who are challenging the companies’ application of Cook County’s new soda tax to unsweetened drinks.

The new Cook County soda tax, which imposes a one-cent-per-ounce tax on sugary drinks, reportedly went into effect on Aug. 2. The tax applies to drinks like soda, energy drinks and sweetened coffee and tea products. It does not apply to unsweetened beverages, bottled water or beverages that are 100 percent juice.

Plaintiff Kelly Tarrant filed a 7-Eleven class action lawsuit, plaintiff Yvan Wojtecki filed a McDonald’s class action lawsuit and plaintiff Vincent De Leon filed a Walgreens class action lawsuit, claiming they were improperly charged the soda tax.

Tarrant alleges she bought an iced coffee without any sugar but was charged 28 cents for the soda tax. When she complained to the 7-Eleven store manager, she claims she was told that their payment system is programmed such that all beverages sold in Big Gulp cups are automatically charged the soda tax whether or not the beverage is a sweetened drink.

Wojtecki claims McDonald’s applied the soda tax to the pre-tax price of his beverage, causing him to be overcharged by two cents. “Upon information and belief, Defendants, through their point-of-sale systems, have been unlawfully over-charging sales tax to consumers for orders including items subject to the Sweetened Beverage Tax,” the McDonald’s class action lawsuit states.

De Leon alleges he was charged a soda tax for unsweetened beverages, including a bottle of Lipton Pure Leaf Unsweetened Green Tea, Dasani Black Cherry Sparkling Water and Dasani Tropical Pineapple Sparkling Water. All of these beverages are clearly labeled “unsweetened,” the Walgreens class action lawsuit alleges.

The hotly-contested soda tax was implemented with public health listed as a goal, but it was also meant to generate money for Cook County’s operating budget. Retailers took legal action in effort to prevent the tax from being implemented, and a temporary restraining order was imposed by the court. More than 400 employees were reportedly laid off due to a lack of funds while the restraining order was in place.

Cook County Board President Toni Preckwinkle claims that more than 1,000 jobs may be lost without the money generated by the soda tax, which is expected to bring in $17 million per month.

Tarrant is represented by Thomas A. Zimmerman Jr., Sharon A. Harris, Matthew C. De Re, Nickolas J. Hagman, and Maebetty Kirby of Zimmerman Law Offices PC. Wojtecki is represented by Daniel R. Seidman of Seidman Margulis & Fairman LLP and Jay A. Heller of Heller & Richmond Ltd. De Leon is represented by Elizabeth A. Fegan of Hagens Berman Sobol Shapiro LLP.

The Illinois Soda Tax Class Action Lawsuits are Kelly Tarrant v. 7-Eleven Inc., Yvan Wojtecki v. McDonald’s Corporation, et al., and Vincent De Leon v. Walgreens Boots Alliance Inc., in the Circuit Court of Cook County Illinois.