ST. LOUIS - The online retailer Overstock.com has found itself in hot water after a class action lawsuit was recently filed against the company alleging its Missouri customers are illegally charged too much tax.
Missouri law requires that online retailers who sell to Missouri residents charge a state and local use tax for product sales; however, according to documents filed Feb. 12 in the St. Louis County Circuit Court, Overstock.com charged too much and is in violation of Missouri state law by overcharging tax on items that are shipped to Missouri customers.
The plaintiff is Shannon Garcia of St. Louis, who purchased an item from Overstock.com and was charged a 9.244% use tax rate, but the proper use tax rate would have been 5.725%, the suit says.
Overstock.com is charged with one count of violation of the Missouri Merchandising Practices Act, one count of unjust enrichment, one count of negligence and one count of money had and received; the class representative is seeking repayment of all tax monies unlawfully collected by the online retailer, as well as other interest and litigation fees for each class member.
The class is represented by Orlowsky Law, LLC and Goffstein Law, LLC, both of St. Louis.