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Shoppers claim LuLaRoe overcharges sales tax

By Wadi Reformado | Mar 23, 2017

PITTSBURGH (Legal Newsline) — Women's clothing company LuLaRoe is facing a class action lawsuit for allegedly overcharging sales tax.

Rachael Webster, a shopper, filed a complaint on behalf of all others similarly situated Feb. 17 in U.S. District Court for the Western District of Pennsylvania against LLR, Inc., d/b/a LuLaRoe, alleging the multi-level marketing company, which sells women's fashion, charges sales tax to their buyers based on the location of the consultant who made the sale.

According to the complaint, the plaintiff alleges she suffered damages from being overcharged for her purchases, citing the additional cost of sales tax on top of the clothes she bought. The plaintiff holds LuLaRoe responsible because the defendant allegedly charges customers at a tax rate based on where the consultant is located, rather than based on the address the items were shipped to, where clothing may not be taxed.

The plaintiff requests a trial by jury and seeks damages, all legal fees, and any other relief as this court deems just. She is represented by R. Bruce Carlson, Gary F. Lynch, and Kevin Abramowicz of Carlson Lynch Sweet Kilpela & Carpenter and by Kelly K. Iverson of Cohen & Grigsby in Pittsburgh.

U.S. District Court for the Western District of Pennsylvania Case number 2:17-cv-00225-DSC

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