Michaels Slammed for Allegedly Overcharging Shoppers
A new lawsuit accuses the beloved crafts retailer of doubling certain fees.
These days, it feels like we have to pay higher prices for just about everything—the last thing we want is to find out companies are making us pay even more than we should be. Nevertheless, many popular retailers, from Walmart to Dollar General, have come under fire for potentially ripping off shoppers. And now, a beloved craft store is being name-checked as well. Read on to find out why Michaels has been accused of overcharging customers.
READ THIS NEXT: 5 Warnings to Shoppers From Ex-Michaels Employees.
Multiple retailers have recently been accused of overcharging shoppers.
Consumers are paying close attention to their receipts these days—and with good reason.
In Aug. 2022, plaintiff Yoram Kahn filed two separate class action lawsuits against Walmart, Inc. and Target Corporation, claiming that both retailers use a "bait and switch" tactic to overcharge customers.
Walmart and Target allegedly have "shelf pricing [that] frequently misrepresents the prices consumers are charged at the point of sale," according to the lawsuits. In other words, the price that rings up at the checkout is higher than what is listed on the shelf.
And in January, a TikTok video from a former Hobby Lobby employee prompted many loyal customers to speak out about being allegedly asked to pay more than they should at different Hobby Lobby locations.
"I hate going in there because I feel like everything is on sale and they never give me the sale price lol," one user commented.
Now, Michaels is facing similar claims.
Michaels is being sued for allegedly overcharging.
On Feb. 17, a class action lawsuit was filed against Michaels. Plaintiff Amber Kelly is suing the arts and crafts chain for allegedly "illegally and erroneously" overcharging certain customers.
According to Kelly, she and other shoppers have faced monetary loss due to "unfair and deceptive practices" by the retailer.
Best Life reached out to Michaels for comment on the lawsuit, but has not yet heard back.
The lawsuit claims that Michaels overcharged shoppers for sales tax.
Kelly's case centers on the claim that Michaels has swindled some Missouri shoppers on sales tax. The state's sales and use tax rate is currently 4.225 percent, per the Missouri Department of Revenue.
But according to the new lawsuit, Michaels allegedly charged Missouri consumers more than this for purchases delivered from outside of the state.
"Missouri state law mandates that retailers charge a 'use tax' on sales of their products through remote means, including an internet website, telephone, catalog or other remote communications system … to Missouri purchasers that are shipped from an out-of-state facility," the suit states. "Michaels illegally and erroneously overcharges tax monies at a higher tax rate than the correct applicable use tax rate … resulting in the over-collection of monies from Missouri consumers."
Kelly claims she was charged double the right rate.
According to the lawsuit, Kelly bought 21 Gildan Short Sleeve T-Shirts from the Michaels website on Jan. 4. Despite being shipped from a facility outside of the state, the order was to be delivered to Kelly's address in Blue Spring, Missouri. As a result, the lawsuit says that the "applicable use tax rate" for this purchase should have been 4.225 percent.
But according to Kelly, Michaels required her to pay a 8.603 percent tax rate instead.
"[Michaels] misrepresented the amount of tax due for the provision of its goods and services, and collected more tax than allowed under Missouri law," the lawsuit states, alleging that this is a "deceptive practice" by the retailer that violates the Missouri Merchandising Practices Act (MMPA).