Customers are urged to carefully check their receipts after discovering that many who shopped online at Walgreens in one state were charged extra due to a mistake.
The issue came to light when a consumer advocate noticed an unexpected charge on his receipt after buying a tin of cookies from the Walgreens website.
Consumer Advocate Spots Overcharging Error
Edgar Dworsky, the person behind Consumerworld.org, noticed something unusual after he picked up a tin of butter cookies from a Walgreens in Massachusetts. He had bought the cookies online and found a $1.79 sales tax on his receipt.
In Massachusetts, food is usually not taxed, except at restaurants, so Dworsky was surprised by the charge. On further investigation, he discovered that Walgreens was mistakenly adding a 7% sales tax to food items sold online.
Dworsky's suspicions grew when he added more tax-exempt food items to his online shopping cart on Walgreens.com and saw the sales tax applied again. This error highlighted a widespread issue affecting customers buying food items online from Walgreens.
Dworsky has uncovered that Walgreens.com was incorrectly adding a 7-percent sales tax on cookies and crackers for an undetermined period. According to Dworsky, this mistake was a clear oversight.
The root of the issue seems to be that Walgreens was applying Illinois sales tax laws, where its headquarters are located, instead of adhering to Massachusetts law, which does not tax many food items.
The exact duration of this oversight and the number of affected customers remain uncertain. However, the error led to significant overcharging.
Walgreens acknowledged the mistake, explaining to Dworsky that the incorrect tax charges were due to various food items being wrongly categorized in their online system. This misclassification led to the unwarranted tax being applied to a wide range of food products purchased online by Massachusetts shoppers.
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Misplaced Taxes on Snack Foods Refunded by Walgreens
Customers at Walgreens found themselves paying sales tax on items like cookies, crackers, and even Twinkies, which were mistakenly categorized as baked goods.
According to Dworsky, speaking to CBS affiliate WBZ-TV, Massachusetts law allows some baked goods to be taxed, which led to this unusual situation. Dworsky highlighted the error and mentioned that he had already received a refund for the incorrect sales tax charge.
Following the revelation, Walgreens confirmed its commitment to refunding any other customers who come forward. "If customers believe they have been impacted and are now owed a sales tax refund, please contact 877-250-5823 for assistance," a company spokesperson advised. Customers seeking refunds are encouraged to have their order number ready to expedite the process.
Walgreens is taking steps to improve communication with store leadership to ensure such errors do not happen again. The company emphasized that it does not benefit from mistaken sales tax charges, as all collected taxes are passed on to state and local tax authorities.
The error was reportedly identified and rectified in December, as Walgreens confirmed to Fox affiliate WFXT. Massachusetts customers should no longer face incorrect taxation on these snack items. Despite these assurances,
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