A class action lawsuit claims Michaels arts and crafts store overcharged taxes on delivery purchases for four years.
Four Missouri women are the named plaintiffs in the federal complaint filed December 6 against Michaels Stores Inc. The women are Courtney Krus of St. Louis, Amy Stanton of Greenwood, Lauren Veach of Kansas City and Maria Kridel of St. Louis. The class is open to all persons who purchased goods from Michaels’ internet website for remote delivery from January 1, 2019, through December 31, 2023.
According to the complaint, Michaels illegally and erroneously overcharged tax monies at a higher tax rate than the correct applicable use tax rate on certain products purchased through remote sales channels that are shipped to Missouri customers from an out-of-state facility, resulting in the overcollection of monies from Missouri consumers.
Krus says she purchased some items online on December 1, 2022. She says her applicable use tax rate should have been 9.013 percent. Instead, she says she was charged a 9.674 percent tax rate.
Stanton says she purchased an item online on November 8, 2021. Her applicable use tax rate should have been 4.225 percent, and she was charged an 8.1 percent tax rate.
Veach says she purchased several items online on January 31, 2022, and her applicable use tax rate should have been 7.475 percent. Instead, she says she was charged an 8.852 percent rate.
Kridel says she purchased a few items October 21, 2021, and her applicable use tax rate should have been 4.225 percent. She says she was charged a 9.221 percent tax rate.
The plaintiffs seek to represent a class against the Texas-based company. The complaint says there could be tens of thousands of members of the class.
They accuse Michaels of unjust enrichment, which is in violation of the Missouri Merchandising Practices Act. They also say the defendant received money from the plaintiffs and the class by charging a higher tax rate than the correct applicable use tax rate, arguing the excessive charges should be returned to the plaintiffs and class.
The plaintiffs seek an order certifying the class, an order in favor of the plaintiffs and the class on all counts, compensatory damages, punitive damages, pre-judgment interest, restitution and other forms of equitable monetary relief, an order directing the defendant to cease the illegal actions detailed in the complaint and for an order awarding attorney fees, expenses and court costs.
The plaintiffs and the potential class are being represented by Yitzchak Kopel of Bursor & Fisher in New York and by Stephen A. Beck of Bursor & Fisher in Miami.
Michaels is no stranger to class action lawsuits.
One alleges the company uses fake prices and fake discounts to lure sales, alleging false advertising, breach of contract, misrepresentation and other claims. Another claims the company’s website invades consumers’ data privacy by using “session replay” spyware. And yet another accused the company of not paying employees properly regarding overtime and not always paying minimum wage, among other issues.
U.S. District Court for the Eastern District of Missouri case number 4:24-cv-01649