A class action lawsuit has recently been filed in New Jersey against Costco, who allegedly tacked 7% sales tax onto its toilet paper, according to a NJ.com report. The suit holds merit in the state because sales of disposable household paper such as toilet paper and paper towels are exempt from sales tax in New Jersey.
Plaintiff Robert Arnold said that he and his wife bought toilet paper from two separate Costco wholesalers on two occasions in July, 2015 and each time he was, unknowingly, charged sales tax on the items. He later discovered the charge after going over his receipts. When he went back to the wholesalers to dispute the charges, employees allegedly told him that they couldn’t reimburse the money and that he would have to file paperwork with Costcos corporate offices.
The notion didn’t sit well with Mr. Arnold, who asked employees why he should take time out of his day to file paperwork when he shouldn’t have been charged in the first place. Instead, he filed suit in order to recoup his losses.
The suit accuses Costco of unjust enrichment, fraud, and negligence, as well as violations of the New Jersey Consumer Protection Act, the Truth-In-Consumer Contract Warranty and Notice Act, and New Jersey Common law. It seeks to reimburse plaintiffs joining in the suit who were also forced to pay a similar sales tax, as well as punitive damages.
Hundreds of thousands of New Jersey residents have paid a 7% surcharge in the guise of a sales tax when purchasing toilet tissue, the complaint alleges.