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(Scroll down for video) Walmart was caught red-handed stealing from its customers by overcharging in taxes, according to a new lawsuit filed in court.
A Pennsylvania man has filed a lawsuit against Walmart alleging that the retailer overcharged him by 21 cents for items purchased with a coupon.
According to the lawsuit filed in Allegheny County, Pennsylvania, Brian Farneth bought two cans of shaving cream for $2.97 each at a Walmart with a "buy one get one free" coupon. The cashier, Farneth said, correctly deduced the price of one can of shaving cream from the total, but did not deduct the tax, which caused him to lose 21 cents.
Farneth claimed he is just one of many customers in 8,500 Walmart stores around the world that are charged taxes for shopping coupons.
"Walmart’s current system in relation to the collection and submission of sales tax, are in compliance with tax laws of Pennsylvania," Walmart spokesperson Dan Fogleman said in an email. "We have requested an opinion from the state and the state confirmed this," the statement said.
Tax codes vary from state to state, but Farneth said that Walmart is specifically in violation of Article 33.2 (b) (2) of the Code of Pennsylvania. The section states that items purchased with coupons like "buy one get one free" should receive a "new purchase price" and be taxed as such. The lawsuit also states that the retailer would benefit economically from overcharging, since the seller is entitled to a 1 percent discount on taxes paid to the state.