Foot Locker Class Action Alleges False Tax Collection

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A class action lawsuit alleges Foot Locker Inc. systematically charges an additional and fraudulent “sales tax” to New Jersey residents.

The complaint asserts that the extra charge is imposed on delivery fees, even though Foot Locker knows that the merchandise is exempt from New Jersey sales tax.

“Under New Jersey law, sales tax may not be imposed on delivery charges associated with tax exempt items,” according to the complaint.

And the class action contends that Foot Locker knows that a “substantial portion of the merchandise sold to New Jersey consumers via Defendants’ website—specifically including most shoes and clothing—is exempt from and not subject to New Jersey state sales tax.”

Indeed, New Jersey law is very clear on this point, the class action notes. The complaint cites an example in the New Jersey regulation on sales tax that states “no sales tax will be imposed” on a purchase of clothing which specifically includes a shipping fee.

Yet that is exactly what the New Jersey false sales tax class action accuses Foot Locker of doing. Plaintiff Jovany Blasini states that he is a resident of Burlington County, New Jersey, and that in July of 2016 he purchased a pair of shoes from the Foot Locker website.

The shoes cost $39.99, and Foot Locker included a $7.99 charge for “shipping and handling.”

Blasini asserts that Foot Locker did not charge a sales tax on the shoes themselves, and yet it charged an additional $0.56 on the transaction.

The complaint notes that $0.56 is exactly seven percent of the $7.99 shipping fee, and that the New Jersey sales tax rate is seven percent.

The class action lawsuit alleges that Foot Locker’s “uniform policy” is a “systematic scheme of false and misleading sales practices” by which Foot Locker consistently overcharges New Jersey consumers.

The class action also argues that Foot Locker’s practice is deceptive, in that Foot Locker states on its website that “Foot Locker is required by law to collect applicable sales or use tax.”

The complaint asserts that Foot Locker has violated the New Jersey Consumer Fraud Act, the Truth in Consumer Contract, Warranty and Notice Act, and the common law duty of good faith and fair dealing.

Blasini seeks to represent a Class of “all New Jersey citizens who purchased any footwear or clothing from Defendants’ online Foot Locker website between September 13, 2010 and the present, were not charged sales tax on the purchase price thereof, and paid a delivery charge in connection with such purchase.”

The class action requests damages, including treble damages under New Jersey consumer protection law, as well as an injunction stopping Foot Locker from overcharging consumers with the false sales tax.

Plaintiff Jovany Blasini is represented by Stephen P. DeNittis, Joseph A. Osefchen, and Shane T. Prince of DeNittis Osefchen P.C.

The Foot Locker Sales Tax Class Action Lawsuit is Jovany Blasini v. Foot Locker Inc., et al., Case No. BUR-L-1931-16, in the Superior Court of New Jersey in Burlington County.