Brigette Honaker  |  May 24, 2019

Category: Legal News

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Sandals beach resortA recent class action claims that Sandals Resorts in the Caribbean deceptively charge local government taxes that are actually retained as profit by the company.

Plaintiff Vitalti Feldman claims that he and his family were charged a local “tax” when they stayed at Sandals Resorts.

The New Jersey family reportedly stayed at Sandals Resorts three separate times in 2017, 2018, and 2019 where they were charged deceptive accommodation taxes.

Sandals Resorts are found throughout the Caribbean, including in tourist locations such as Turks and Caicos Islands, Antigua, Barbuda, and St. Lucia.

Feldman argues that most consumers assume that taxes are a “pass through” charge that is imposed by a government.

The Sandals class action states that when Sandals charges consumers for taxes, they assume that these taxes will be paid to the applicable government.

However, despite this reasonable assumption, Sandals allegedly has agreements with Caribbean governments that allow the resorts to overcharge in accommodation tax and pocket some of the fees for themselves.

The Sandals Resorts class action states that guests of Beaches Turks & Caicos are allegedly charged 12 percent accommodation tax but part of this is retained by Sandals.

Similarly, guests of the Sandals Grande Antigua, Sandals Barbados, and Sandals Royal Barbados resorts are reportedly charged 12.5 percent sales taxes in every case before Jan. 1, 2017, but some of these taxes were retained by the resort company.

“These tax charges are used to generate extra profit at the expense of Plaintiff and others similarly situated, who were deceived into believing the fees are legitimate charges directly related to Sandals’ owed and paid taxes to the government,” the Sandals Resort class action lawsuit claims. “In fact, the fees are nothing but profit-enhancers disguised as taxes that have a legitimate purpose.”

Feldman argues that the deceptive charging of taxes violates the Florida Deceptive and Unfair Trade Practices Act (FDUTPA).

Additionally, the Sandals class action claims that Turks and Caicos law prohibits businesses from charging taxes on guests younger than 12 years of age. Despite this, Sandals allegedly charges taxes on children which Feldman argues is a further violation of FDUTPA.

Feldman seeks to represent a FDUTPA Class of current and former Sandals guests who stayed at resorts in Turks and Caicos Islands, Antigua, Barbuda, and St. Lucia and were charged a local government tax and/or were deceptively charged a “tax” that was retained by Sandals as profit.

He also seeks to represent an Unjust Enrichment Class of current and former Sandals guests who paid the resort a local government “tax” that was retained in whole or in part by Sandals.

The Sandals Resorts class action lawsuit seeks compensatory damages, restitution, interest, court costs, and attorneys’ fees.

Feldman and the proposed Class are represented by Michael A. Winkleman, Jason R. Margulies, Marc E. Weiner, and Daniel W. Grammes of Lipcon Margulies Alsina & Winkleman PA.

The Sandals Resorts Taxes Class Action Lawsuit is Feldman v. Sandals Resorts International Ltd. d/b/a Sandals, et al., Case No. 1:19-cv-22046-UU, in the U.S. District Court for the Southern District of Florida.

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