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LEGAL NEWSLINE

Wednesday, April 24, 2024

Domino's fights lawsuit over sales tax on coupons

Federal Court
Dominos

LOS ANGELES (Legal Newsline) – Domino’s says it is protected by an arbitration clause from a proposed class action lawsuit that complains sales tax is added after a customer uses a coupon.

The case, filed last year in Los Angeles, takes aim at a coupon that cuts the cost of some items to $5.99 if two or more are purchased together. Plaintiff Jeff Smorowski and lawyers at Righetti Glugoski and Nathan & Associates say Smorowski was charged much more than $6 per items after tax was figured.

But Smorowski was using Domino’s online ordering option, a motion to dismiss or compel arbitration filed March 15 says.

Under the “PLACE YOUR ORDER” button is an acknowledgement that by placing it, a customer agrees to the terms of use.

“As part of this ‘ongoing contract’ with Domino’s, the consumer agrees to a broad arbitration clause that includes disputes regarding the arbitrator’s jurisdiction,” the motion says.

“Namely, the consumer agrees to arbitrate ‘any claim, dispute, and/or controversy arising out of or relating in any way to your use of the web sites or the applications, any products sold by Domino’s Pizza through the websites or the applications, these terms of use, or the scope or validity of this Arbitration Agreement.’”

The lawsuit says consumers expect “reputable businesses such as Domino’s” will conform to statements made in their offers.

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