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Class Action Lawsuit Says BJ’s Overcharges Tax on Discounted Items
By Anne Bucher
BJ’s Wholesale Club Inc. has been hit with a class action lawsuit accusing the retailer of charging sales tax on the full price of items even when customers used discount coupons, in violation of Pennsylvania law.
In their class action lawsuit, filed August 8, 2013, John Myers and Cecelia Reihl claim that they were repeatedly charged sales tax on the pre-discount price of items purchased with coupons, even though Pennsylvania law states that sales tax can only be applied to the discount price of an item.
“The extra money that BJ’s collects under color of law – 6 percent of the difference between the item’s full and discounted price – is not actually sales tax and does not have to be remitted to the state,” the BJ’s Wholesale Club class action lawsuit says.
The plaintiffs claim that they did not initially notice the higher tax on their first two purchases, but became aware of the issue when they purchased a television with a discount coupon. When they noticed that BJ’s had charged them sales tax based on the full price of the product rather than the discounted price, they cancelled their purchase. According to the class action lawsuit, the plaintiffs complained to the manager of the BJ’s store, who informed them that Pennsylvania law required the retailer to charge sales tax based on the full price of items purchased with coupons.
In their class action lawsuit, the plaintiffs allege that BJ’s follows this illegal practice at all 15 of its Pennsylvania retail locations. They believe that tens of thousands of BJ’s customers may be affected.
“Because the potential class encompasses many thousands of claims, a single, state-wide class action is plainly more efficient than thousands of small claims law suits, each requiring the same discovery,” the plaintiffs say. They believe that a class action lawsuit will “provide optimum compensation to Class Members for their injuries as well as deter the Defendant and other similar businesses from engaging in such wrongful conduct in the future.”
Because BJ’s is a membership club, the plaintiffs believe that the potential members of the class action lawsuit will be easy to track down using their BJ’s membership identification numbers. They claim that BJ’s violated both the Pennsylvania Unfair Trade Practices Law and the state’s Consumer Protection Law. They also claim that BJ’s engaged in unjust enrichment. They are seeking reimbursement in the amount of their sales tax overpayments. They are also seeking treble damages and attorneys’ fees. They have demanded a trial by jury.
The plaintiffs in the putative class action lawsuit are represented by George Bochetto of Bochetto & Lentz PC and William Wolk of Litigation Partners PL.
The BJ’s Sales Tax Class Action Lawsuit is John G. Myers, et al. v. BJ’s Wholesale Club Inc., Case No. 130800546, in the Court of Common Pleas of Philadelphia County.
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
8 thoughts onClass Action Lawsuit Says BJ’s Overcharges Tax on Discounted Items
How do they get away charging full tax on a mattress when they had a
$400.00 savings on the set.
I paid $299.99 the tax was on the full price of $ 699.99
The tax on $ 299.99 was
$ 60.36 in my bill That tax represents the full of
$ 699.99 no what I paid $ 299.99.
I have noticed this practice in the past but it wasn’t until I purchased something for half off that was $130 and charged tax on $260 that it hit home how much this is adding up to. Tens of thousands of customers making tens of thousands of purchases paying sales tax on items that have been discounted must add up into the millions. Please send info on how I can become a member of the class action suit. It should be easy to determine how much extra each member has been overcharged for sales tax because members are listed and their sales purchases can also be tracked
I noticed this crooked practice when I first visited BJs. This was after it came to Hampton Roads, VA a few years ago. I was informed that that is the way it does its business in PA. So, is that supposed to make it right? Who is the idiot who programmed this system? I had let it go myself as I had not purchased any high end items with a discount until this past week. The item was half off with the instant coupon, but I was charge tax on the full price. Being charged double tax for any purchase is outrageous!
please send me form, I just had this done to a large purchase at a BJ’s in maryland
Please send me a claim form, thank you!
Send info as when we can file..Thanks
Send info. as what we are entitled to.
Send info when can we file…