News Summary
A Rhode Island resident has filed a federal lawsuit against Chewy, claiming the online pet supply retailer overcharged customers via incorrect sales tax calculations on its Autoship program. The complaint alleges that Chewy calculates tax based on the full retail price, not the discounted price, leading to potential violations of the Rhode Island Deceptive Trade Practices Act. The lawsuit could affect millions of customers enrolled in the Autoship program between 2022 and 2025, raising concerns about sales tax practices in e-commerce.
Rhode Island – A federal lawsuit has been filed against Chewy, the popular online pet supply retailer, in the U.S. District Court for Rhode Island. The lawsuit, initiated by Rhode Island resident Alix Cavas, claims that Chewy is engaging in deceptive and unfair trade practices in their Autoship program by overcharging customers due to incorrect sales tax calculations.
The crux of the complaint revolves around how Chewy determines sales tax for orders placed through its Autoship program. According to the allegations, Chewy promotes a discount structure for its Autoship customers, which includes a 35% discount on the first order and a 5% discount on subsequent orders. However, the lawsuit argues that the company calculates sales tax based on the full retail price of items rather than the discounted price, resulting in customers essentially paying more than they should.
Cavas contends that this practice violates standard retail practices, whereby sales tax is applied to the final price inclusive of discounts. The complaint states that over the course of 18 purchases made over three years, Cavas overpaid a total of $13.35 in sales tax due to Chewy’s methods.
The lawsuit alleges that Chewy’s actions violate the Rhode Island Deceptive Trade Practices Act and may also qualify as breach of contract, unjust enrichment, and negligence. Cavas’s representation includes the New York law firm Gainey McKenna + Egleston along with local attorney James Ruggieri.
Estimations within the complaint suggest that this issue could extend beyond Cavas, potentially affecting a class of millions. It is indicated that tens of thousands of these individuals might make up a subclass of those enrolled in Chewy’s Autoship program between the years 2022 and September 5, 2025.
Legal counsel for both Cavas and Chewy did not provide comments when approached for statements regarding the lawsuit. As it stands, the outcome of this case remains uncertain, but many consumers who have utilized Chewy’s Autoship may be closely monitoring the proceedings.
Background information reveals that Chewy’s Autoship program is designed to enhance customer convenience by allowing pet owners to receive regular deliveries of pet supplies at discounted prices. However, this lawsuit shines a light on potential legal and ethical concerns regarding how companies calculate sales taxes on discounted goods.
As the case proceeds, it may prompt broader discussions about sales tax practices in e-commerce, particularly for subscription-based services that offer promotional pricing. If the allegations prove valid, Chewy may need to revise its sales tax calculation methods to align with legal standards and ensure customer satisfaction.
The implications for Chewy, if found in violation of the claims made in the lawsuit, could lead to significant changes in how the company structures its Autoship program and calculates sales tax for its customers. The case highlights the growing importance of transparency and fairness in online retail practices, especially as e-commerce continues to flourish.
Deeper Dive: News & Info About This Topic
- GoLocalProv: Federal Lawsuit Filed Against Chewy in RI
- Providence Journal: Chewy Class Action Lawsuit Filed in RI
- AOL: Online Pet Supply Store Chewy Under Fire
- Bisnow: Chewy Anchored 343 Congress Sale
- Providence Journal: RI Weather Updates
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
