Amazon user files class action lawsuit claiming online shopping giant overcharged on sales tax
Amazon hit with another class action lawsuit over ‘excessive’ charges
- An Amazon customer in Tennessee has filed a class action lawsuit alleging the company systematically overcharged sales tax on purchases made through its third-party marketplace.
- The complaint, filed by Cullen Duke in Washington state court, claims Amazon levied a 9.5 percent sales tax instead of the correct 9.25 percent for residents in unincorporated areas of Sullivan County.
- Lawyers argue that Amazon, as the “marketplace facilitator,” is legally responsible for calculating and collecting the correct sales tax, and customers cannot obtain refunds for these small overcharges from the state.
- Despite being notified by Duke in March 2025, Amazon allegedly continued to apply the incorrect tax rate and later attempted to justify it by claiming the rate was associated with the item's origin. Amazon didn’t immediately respond to a request for comment.
- The lawsuit seeks to ban Amazon from further overcharging, compel it to repay all affected customers, and cover legal costs and punitive damages.