A class-action lawsuit filed against L.L. Bean, Freeport, ME, claims that the retailer overcharged sales tax to a customer who used coupons issued through a credit card program.
The class action suit, filed July 21 in Cumberland County Superior Court in Portland, ME, alleges that a consumer who used a $10 coupon to purchase an item at a reduced rate was charged tax on the full-priced item. R.F. Flippo of Cambridge, MA, who initiated the suit, alleges that she was overcharged 55 cents.
David Bertoni, a lawyer for L.L. Bean, said that Bean’s policy, required by state law, is to charge state sales tax on the full price. “Like every other mail order company we pass along the tax to the state so it’s not like we have any incentive to overcharge the taxes,” Bertoni said.
Bertoni plans to file a motion to dismiss the case next week.
Daniel Mitchell, a lawyer for Flippo, said that Flippo participated in L.L. Bean’s affinity Visa credit card program and obtained discount coupons of $5 to $10 through the program. He said Flippo believes she was also overtaxed on other occasions as well.
Mitchell said that the tax collection was in violation of state law and that L.L. Bean should have deducted the value of the coupon before assessing the sales tax. Lawyers for Flippo are seeking others who believe they have also been overtaxed through L.L. Bean’s affinity program.
Damages have yet to be specified, Mitchell said.
The credit card company MBNA reportedly reimburses L.L. Bean for the value of the coupon, therefore L.L. Bean receives the full price and must charge sales tax on that amount even though the customer is paying less.
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