PITTSBURGH – A trio of class action lawsuits allege that a wide variety of retailers have been unlawfully charging sales tax on the purchases of face masks during the coronavirus pandemic.
James Padula of New Castle, Vince Ranalli of Pittsburgh and Joshua James of Freeport (and on behalf of all others similarly situated) separately filed suit in the Allegheny County Court of Common Pleas on Nov. 12.
The lawsuits take aim at many different retailers, including Marshall’s, Forever 21, Sally Beauty Supply, Dry Goods, Amazon, Zazzle, Etsy, Brave New Look, Outdoor Research, Aldi, Dollar General and eBay.
“Retailers operating in Pennsylvania cannot collect sales tax on protective face masks or coverings because they are nontaxable as ‘medical supplies’. Retailers operating in Pennsylvania cannot collect sales tax on protective face masks or coverings because they are nontaxable as ‘clothing and accessories.’ In order to charge or collect sales tax, retailers must first obtain a license from the Pennsylvania Department of Revenue,” the suits state.
“During Governor [Tom] Wolf’s declared state of emergency, [the plaintiffs] and others similarly situated purchased protective face masks and coverings from various Pennsylvania-licensed retailers and were charged an unlawful sales tax on said purchase. Defendants represent a fraction of retailers that failed to comply with 72 P.S. Section 7204(4) and 72 P.S. Section 7204(18) despite information readily available to them.”
During the coronavirus pandemic, charging consumers, like the plaintiffs and others similarly situated, sales tax on medical supplies and/or clothing and accessories – both of which are non-taxable, the suits say – constitutes unfair methods of competition and unfair and deceptive practices in stark violation of the Unfair Trade Practices and Consumer Protection Law.
The lawsuits seek class action status for all those who purchased face masks from those businesses since March 6 and paid sales tax for them.
Since there are an estimated 12.8 million people in Pennsylvania and everyone was ordered to wear a mask in public since Wolf’s emergency orders were enacted in the spring, the lawsuits estimate the class of plaintiffs could number in the hundreds of thousands.
In a social media post, potential class counsel Joshua P. Ward of Pittsburgh-based law firm Fenters Ward stated, “It’s illegal to charge any sales tax on any COVID mask.”
For counts of violating the Pennsylvania’s Fair Credit Extension Uniformity Act and Unfair Trade Practices and Consumer Protection Law, unjust enrichment, misappropriation/conversion and the seeking of permanent injunctions looking to end unlawful charging of sales tax, the plaintiffs are seeking a long list of reliefs:
• Declaring these actions as proper class actions, certifying the classes as requested herein, designating plaintiffs as class representatives and appointing the undersigned counsel as class counsel;
• Ordering defendant to pay actual, consequential, statutory, and/or punitive damages to plaintiff and the class members, including restitution and disgorgement of all profits and unjust enrichment that defendant obtained from plaintiff and the class members as a result of defendant’s unlawful conduct;
• Ordering declaratory and injunctive relief as permitted by law or equity, including enjoining defendant from continuing the unlawful conduct;
• Ordering defendants to pay attorney’s fees and litigation costs to plaintiff and the other members of the class;
• Ordering defendants to pay both pre- and post-judgment interest on any amounts awarded and;
• Ordering such other and further relief as may be just and proper, plus a trial by jury.
The plaintiffs are represented by Joshua P. Ward of Fenters Ward, in Pittsburgh.
The defendants have not yet secured legal counsel.
Allegheny County Court of Common Pleas cases GD-20-011702, GD-20-011704 & GD-20-011706
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com