An Amazon customer in Tennessee has filed a class action lawsuit against the online retail giant, accusing it of systematically overcharging sales tax on third-party marketplace purchases. The complaint was lodged in Washington state court last month by Cullen Duke, who claims Amazon levied excessive tax on orders and refused to stop when alerted to the issue.
According to the lawsuit, Amazon, as a 'marketplace facilitator' under Tennessee law, is responsible for correctly calculating, collecting, and remitting sales tax. Duke lives in an unincorporated area of Sullivan County where the correct tax rate is 9.25 percent, but he alleges Amazon charged him and others 9.5 percent over two years. The disputed amounts include $1.28 on a $13.45 moisture meter and $126.89 on a $1,335.70 braking device.
Duke notified Amazon of the error on March 1, 2025, requesting a refund, but the company continued to collect the higher rate. In a May 8 response, Amazon justified the charge by citing the shipment's origin, though Duke argues that the tax rate should be based on the purchaser's location. The lawsuit seeks to ban Amazon from overcharging and to force it to repay affected customers, plus legal costs and punitive damages.
While the class action currently covers an estimated 40 Tennesseans, the complaint notes that similar issues may exist in other states. Duke's lawyer, Toby J. Marshall, stated that consumers expect Amazon to calculate correct sales tax, and the failure to do so is 'unfair and deceptive'.
