Amazon user files class action lawsuit claiming online shopping giant overcharged on sales tax

The Independent
A Tennessee Amazon customer is suing the company, alleging systematic overcharging of sales tax on marketplace purchases.

Summary

An Amazon customer in Tennessee, Cullen Duke, has filed a class action lawsuit against the online retailer, claiming the company systematically overcharged sales tax on purchases made through its third-party marketplace. The lawsuit alleges that Amazon incorrectly charged a higher sales tax rate (9.5% instead of 9.25%) to Duke and other Tennessee residents, despite being legally responsible for calculating and collecting the correct amount. Duke notified Amazon of the issue in March 2025 and again in May 2025, but the overcharging continued.

The complaint details numerous instances of small overcharges on various items, including a moisture meter, a towing light kit, and a brake buddy. While the total amount in dispute is less than $2,500, preventing Duke from seeking a refund from the state, the lawsuit seeks to halt Amazon’s alleged unlawful tax collection practices and obtain repayment for affected customers, along with legal costs and punitive damages.

Duke’s lawyer argues that consumers expect accurate tax calculations from a company like Amazon, and the failure to do so is “unfair and deceptive.” The lawsuit currently seeks class action status for approximately 40 Tennesseans, but suggests similar issues may exist in other jurisdictions.

(Source:The Independent)