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PENNSYLVANIA RECORD

Thursday, November 21, 2024

Lawsuit: Dietary drugs shouldn't be subject to excessive sales tax at Walmart, class action says

State Court
Walmart

PITTSBURGH – Walmart finds itself the target of a class action lawsuit from a Pittsburgh plaintiff, alleging it unlawfully overcharges its customers taxes on the sale of dietary products.

Christopher Lisowski of Pittsburgh (on behalf of himself and all others similarly situated) filed suit in the Allegheny County Court of Common Pleas on Oct. 7 versus Walmart Stores, Inc., of Bentonville, Ark.

“On Dec. 29, 2019 plaintiff Lisowski purchased a six-pack of “5-Hour Energy” brand dietary supplement at the Walmart store located at 877 Freeport Road, Pittsburgh, Pennsylvania. Plaintiff Lisowski’s receipt sets forth a purchase price of $13.48 and description of the dietary supplement purchased by plaintiff Lisowski. He was charged sales tax of $0.94 on the sale,” the suit states.

Lisowski again purchased the product on Sept. 14 and again was charged $0.94 in sales tax.

“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.”

Lisowski argued 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 Walmart 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 Walmart 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 Walmart 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, costs, interest and attorney’s fees.

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-20-010605

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

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