Dunkin’ Donuts franchises in New York City and New Jersey are the target of a recently filed lawsuit alleging that non-taxable items are being taxed at the expense of Dunkin’ customers.

A Fort Lee, New Jersey, couple became the plaintiff in the suit when they say they were overcharged at Dunkin’ Donuts, which was told of the error but failed to correct it, Newsday reported.

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“The unlawful surcharge is disguised as a ‘sales tax’ on the customer’s receipt,” according to the lawsuit, filed by lawyers Carl J. Mayer and Ted M. Rosenberg, NorthJersey.com stated. The suit claimed that taxes were added to purchases of bottled water and packaged coffee, which are not taxable.


“In the aggregate, it’s probably millions of dollars from consumers’ pockets, not just in New Jersey, but in New York as well, and who knows, maybe across the country,” Mayer said to NorthJersey.com.

Canton, Massachusetts-based Dunkin’ Donuts has said it is inquiring from its franchisees if customers were charged undue taxes, according to Newsday. There are approximately 1,000 Dunkin’ Donuts in New York and New Jersey.

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Mayer and Rosenberg are moving to the make the lawsuit class-action, NorthJersey.com stated, adding that Mayer said he is aware of shoppers being taxed for buying water and packaged coffee at “a couple of dozen” Dunkin’ Donuts around New Jersey.

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