Amazon class action alleges company overcharges sales tax

Amazon class action lawsuit overview:

• Who: Plaintiff Cullen Duke filed a class action lawsuit against Amazon.com Services LLC.
• Why: Duke claims the company overcharges sales tax on third-party sales made through its marketplace.
• Where: The Amazon class action lawsuit was filed in Washington state court.

A new class action lawsuit alleges Amazon overcharges sales tax on third-party sales made through its marketplace to shipping addresses in Tennessee.

Plaintiff Cullen Duke claims Amazon, as a “marketplace facilitator,” is responsible for calculating, collecting, remitting and refunding the correct amount of sales tax on third-party sales made through its marketplace.

Duke argues Amazon, however, overcharges sales tax by 0.25% on sales made through its marketplace by third-party sellers, in violation of Tennessee law.

“Amazon continued to calculate and collect excessive sales tax even after the plaintiff notified Amazon of the overcharges and requested a refund,” the Amazon class action lawsuit says.

Duke wants to represent a nationwide class of consumers who, on or after Dec. 12, 2021, purchased goods or services from marketplace sellers through Amazon’s marketplace for which Amazon collected sales tax at a rate higher than applicable for their shipping addresses.

Amazon refuses to refund excess sales tax, class action claims

Duke argues Amazon’s actions have left consumers with no choice but to seek relief through legal action since Tennessee law requires customers to seek refunds directly from the company.

“Amazon, however, refused to pay the funds at issue back to the plaintiff, and Amazon continues to calculate and collect excessive sales tax from him and the class members,” the Amazon class action lawsuit says.

Duke says Amazon is guilty of violating Washington’s Consumer Protection Act and unjust enrichment, alleging that Amazon’s actions have caused him and other consumers to suffer financial harm by paying more in sales tax than they should have.

He demands a jury trial and requests an order certifying the class action and an award of actual and exemplary damages for himself and all class members.

Another Amazon class action lawsuit, filed in Washington federal court, accused the company of misrepresenting the consumer’s ownership rights of digital goods during the purchase process on its Amazon Prime Video platform. 

Have you been overcharged sales tax by Amazon? Let us know in the comments.

The plaintiff is represented by Toby J. Marshall and Eric R. Nusser of Terrell Marshall Law Group PLLC and Daniel A. Rozenblatt and Natasha Dandavati of Edge, A Professional Law Corporation.

The Amazon class action lawsuit is Duke v. Amazon.com Services LLC, Case No. 25-2-37599-4 SEA, in the Superior Court of the State of Washington for King County.

Read About More Class Action Lawsuits & Class Action Settlements:

• Supergoop class action claims mineral sunscreen products contain synthetic ingredients
• Estée Lauder hit with privacy suit over alleged use of unauthorized tracking pixels
• Class action claims LensCrafters, Sunglass Hut and other eyewear sites ignored cookie opt-outs
• McDonald’s class action alleges McRib sandwich contains no actual rib meat