N.J. Dunkin Donuts Stores May Have Ripped You Off By Millions, Suit Charges

Those Dunkin’ Donuts water bottles may have cost you a little too much money.

Dunkin’ Donuts allegedly collected an additional $4 million over three years in New Jersey stores that it wasn’t supposed to charge, a class action lawsuit charges.

Ron and Carol Frate of Fort Lee, as well as three New Yorkers, filed a lawsuit against the chain, saying they were charged tax on bottled water at a Dunkin’ Donuts on Route 46 East in Fort Lee, according to the lawsuit. The store allegedly charged customer sales tax on non-taxable items.

The incident happened in Fort Lee, but the couple expanded the suit to the entire state, saying all of N.J.’s 800 stores were taxing people when they shouldn’t have.

The suit alleges that about 70 percent of Dunkin’ Donuts customers buying bottled water and pre-packaged coffee were overcharged - even though both of those items are exempt from the state’s 7 percent sales tax, according to the lawsuit.

“The unlawful surcharge is disguised as a ‘sales tax’ on the customer’s receipt,” said the New Jersey lawsuit, filed by lawyers Carl J. Mayer of Princeton and Ted M. Rosenberg of Moorestown.

The state Division of Taxation says most items of food and drink purchased in a food store are not subject to a sales tax, specifically exempting water and packaged coffee from sales tax.

Dunkin’ Donuts, which is based in Canton, Mass., said it is looking into the accusations:

“Dunkin’ Donuts has over 1,000 restaurants in New Jersey and New York that are owned and operated by individual franchisees, who are expected to comply with all applicable state and federal laws, including those relating to taxation,” said spokesman Justin Drake. “We are in the process of reaching out to the franchisees identified in the complaint in order to determine whether these taxes were charged to customers.”