Bloomingdale’s Class Action Says Store Improperly Charges Bag Tax

Bloomingdale’s Inc. is facing a class action lawsuit alleging it improperly charges the City of Chicago Checkout Bag Tax on garment bags provided to customers at Chicago Bloomingdale’s stores.

According to the Bloomingdale’s class action lawsuit, the City of Chicago has implemented an ordinance that imposes a tax of seven cents per checkout bag sold or used in the city. The ordinance reportedly defines “checkout bag” as “ a paper carryout bag or plastic carryout bag.”

The term “plastic carryout bag” as defined by the ordinance does not include dry cleaning bags, garment bags, or bags with a retail price of at least 50 cents, the Bloomingdale’s bag tax class action lawsuit says.

Retail merchants retain two cents of the tax and the remaining five cents is remitted to the City of Chicago, the Bloomingdale’s class action lawsuit says. The Chicago bag tax ordinance took effect on Feb. 1, 2017.

“While the Bag Tax may not be a significant amount charged to each purchaser, over $9.5 million of Bag Tax has been collected in the aggregate from customers since the Ordinance was enacted,” the Bloomingdale’s class action lawsuit alleges.

Plaintiff Sonya Rayford purchased a winter coat at a Chicago Bloomingdale’s store on Nov. 9, 2017, the Chicago bag tax class action lawsuit states. She says Bloomingdale’s added a seven cent bag tax to her purchase for the garment bag that was provided to her at the time of sale.

At the time of the purchase, Rayford was unaware that garment bags were not subject to the seven cent Chicago bag tax and did not realize she had been overcharged until she left the store.

Rayford alleges Bloomingdale’s automatically charges the Chicago bag tax on garment bags that do not fall within the category of “checkout bag” as defined by the ordinance.

Rayford filed the Bloomingdale’s class action lawsuit on behalf of herself and a proposed Class of consumers who were charged and paid the Chicago checkout bag tax on garment bags at a Bloomingdale’s store in Chicago.

The Bloomingdale’s bag tax class action lawsuit asserts claims for violations of the Illinois Consumer Fraud and Deceptive Trade Practices Act (ICFA).

“Defendant’s conduct … created a likelihood of confusion or misunderstanding for Plaintiff and the Class by misrepresenting the amount of tax owed on their retail purchases as described herein, and therefore constitutes a deceptive act or practice under the ICFA,” Rayford alleges in the Bloomingdale’s class action lawsuit.

She says Bloomingdale’s intended to deceive consumers by unlawfully charging the Chicago bag tax on garment bags that are not subject to the tax.

The Bloomingdale’s bag tax class action lawsuit seeks actual damages, attorneys’ fees and costs, and all other relief deemed appropriate by the court.

Rayford 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.

The Bloomingdale’s Bag Tax Class Action Lawsuit is Sonya Rayford v. Bloomingdale’s Inc., Case No. 18 CH 60628, in the Circuit Court of Cook County, Illinois County Department, Chancery Division.