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 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 action, 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. At press time, he had filed a motion to dismiss the case. Flippo’s lawyer, Daniel Mitchell, said that his client participated in L.L. Bean’s affinity Visa credit card program and obtained discount coupons of $5 to $10 through it. Mitchell said the tax collection violated state law and that the clothing company should have deducted the value of the coupon before assessing the sales tax. 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, the retailer would receive the full price and would have to charge sales tax on that amount even though the customer is paying less.
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