Wash. High Court Says AT&T Can't Use Fees To Recoup Taxes

Law360, New York (May 3, 2012, 2:10 PM EDT) -- The Washington Supreme Court on Monday ruled that a business cannot impose a surcharge on customers through service agreements to cover its business and occupation taxes, dealing a setback to AT&T Mobility in a consumer protection class action over the fees.

Answering a certified question from the Ninth Circuit, the court said in an 8-1 ruling that even when sellers disclose the extra fees to customers, state law prevents the company from recouping taxes as an added charge to sales prices.

“When a business adds on...
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