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PENNSYLVANIA RECORD

Thursday, May 2, 2024

Target faces class action litigation over sales tax imposed on dietary supplements

State Court
Target

PITTSBURGH – A Pittsburgh man has filed class action litigation against Target, alleging it not only makes millions of dollars in sales of dietary products throughout Pennsylvania, but does so by illegally overcharging customers.

Michael Barger (on behalf of himself and all others similarly situated)  filed suit in the Allegheny County Court of Common Pleas on Oct. 7 versus Target Corporation, of Minneapolis, Minn.

“On Sept. 22, 2020, plaintiff Barger purchased a six-pack of “5-Hour Energy” brand dietary supplement at the Target store located at 4801 McKnight Road, Pittsburgh, Allegheny County, Pennsylvania 15237. Plaintiff Barger’s receipt sets forth a purchase price of $11.99 and description of the dietary supplement purchased by plaintiff Barger. He was charged sales tax of $0.84 on the sale,” the suit states.

“72 P.S. Section 7202 provides that sales tax is imposed upon each separate sale of tangible personal property within the Commonwealth of Pennsylvania equal to six percent of the ‘purchase price’ (seven percent in Allegheny County and eight percent in Philadelphia County), which shall be collected by the vendor from and on behalf of the purchaser.”

However, Barger said that while certain items are specifically exempt from these sales taxes, one of which being dietary supplements, he was charged tax on the supplements regardless.

“Notwithstanding this clear directive, defendant Target charged plaintiff sales tax on plaintiff’s purchases of dietary supplements, and thus overcharged plaintiff for his purchase,” per the suit.

“It is believed and therefore averred that defendant Target overcharges, continues to overcharge and has in the past overcharged Pennsylvania residents in its Pennsylvania stores and Internet sales, in violation of Pennsylvania tax law and regulation. The extent of improper overcharges are believed and therefore averred to be significant, but the exact scope and amount of said overcharges are not yet known, and subject to further discovery.”

For counts of conversion and misappropriation, unjust enrichment, breach of constructive trust, unfair trade practices, the plaintiffs are seeking judgment that declares Target overcharged for its products, orders them to cease and desist from such conduct and awards the plaintiffs such other relief as it deems appropriate under the circumstances.

The plaintiffs are represented by Steffan Thomas Keeton of Keeton Law Firm, plus Frank G. Salpietro and Emily E. Town of Rothman Gordon, in Pittsburgh.

The defendant has not yet secured legal counsel.

Allegheny County Court of Common Pleas case GD-20-010606

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com

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