On December 12, 2025, EDGE and Terrell Marshall Law Group filed a class action lawsuit against Amazon.com Services LLC (“Amazon”) in Washington Superior Court for King County, alleging that Amazon collects excessive sales tax from Tennessee consumers on purchases made through its marketplace.
As set forth in the Complaint, Amazon calculates and charges sales tax at rates higher than those permitted under Tennessee law when consumers purchase products from third-party sellers through Amazon’s platform. Under Tennessee law, when third-party sellers use a marketplace like Amazon to sell goods, the marketplace facilitator is responsible for calculating and collecting the correct amount of state and local sales tax based on the customer’s shipping address.
The Complaint alleges that Amazon instead applies an inflated tax rate that exceeds the rate applicable to the customer’s shipping location. The named plaintiff, a Tennessee resident, alleges that Amazon charged him sales tax at a rate of 9.50% even though the correct rate for his address is 9.25%.
According to the Complaint, Amazon was notified of the alleged overcharges but nevertheless continued to calculate and charge sales tax at rates higher than those applicable. Under Tennessee law, the plaintiff and similarly situated consumers can seek refunds for the overcollected taxes only directly from Amazon.
“Consumers should not have to audit their receipts to make sure Amazon is collecting the correct tax,” said EDGE attorney Daniel Rozenblatt, who represents the plaintiff. “Reasonable consumers expect a company like Amazon to calculate and collect the correct amount of sales tax, and we believe the failure to do so is unfair and deceptive,” added Toby Marshall of Terrell Marshall Law Group, who also represents the plaintiff.
The lawsuit brings claims under the Washington Consumer Protection Act, as well as common law claims for conversion and unjust enrichment. The plaintiff seeks to certify a class of Tennessee consumers who were charged excessive sales tax on marketplace purchases, an order enjoining Amazon from continuing to collect tax at excessive rates, and restitution and damages as permitted by law.
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