Chewy Lawsuit: Autoship Customers Overcharged on Sales Tax

Case Overview: A class action lawsuit claims Chewy's Autoship program overcharges customers on sales tax by calculating it on the full price of items instead of the lower, discounted price.

Consumers Affected: U.S. Autoship customers who joined between 2022 and today.

Court: U.S. District Court for the District of Rhode Island

Pet supply giant Chewy’s popular Autoship program isn’t delivering the discounts it promises, a new lawsuit claims. Instead, the lawsuit says, Chewy routinely calculates sales tax based on the full price of items rather than the lower, discounted price subscribers actually pay, leaving customers footing inflated bills, The Independent reports.

Autoship is marketed as a way for pet owners to save time and money by setting up recurring deliveries of essentials like food, litter, and treats. Subscribers get up to 35 percent off their first order and 5 percent off future shipments. But the lawsuit says those advertised savings vanish when it comes time to calculate sales tax.

Rather than applying the tax after the discount, as Chewy’s own terms of service suggest, the company allegedly bases it on the original price. That practice, the complaint argues, amounts to deceptive trade practices and results in customers being charged more than they owe.

Customers Claim They Were Misled on Autoship Savings

The case was filed by Rhode Island resident Alix Cavas, who says she enrolled in Autoship expecting straightforward savings. 

According to the complaint, Chewy’s written terms clearly state that sales tax should be calculated after discounts are applied. Cavas argues that the company’s failure to follow this method not only cost her money but also misled her into signing up in the first place.

Had she known the discount wouldn’t truly apply to her final total, Cavas says she, and likely many others, would have thought twice about joining Autoship. Instead, she claims she paid extra every time Chewy charged tax as if she hadn’t received a discount at all.

The Lawsuit Alleges a Systematic Billing Problem

The lawsuit stresses that the problem isn’t limited to one shopper’s cart. By structuring its billing this way, Chewy allegedly overcharges every Autoship customer who assumes their “discounted” order will be taxed at the reduced rate. The complaint frames this as a systematic practice that inflates the company’s revenue while eroding consumer trust.

The lawsuit argues the problem extends far beyond a single shopper’s receipt. By structuring its billing system this way, Chewy allegedly overcharges every Autoship customer who believes their discounted order will be taxed at the lower rate. The complaint describes this as a company-wide practice that boosts revenue at the expense of consumer trust.

This isn’t the first time Chewy has faced scrutiny. Last year, the company was hit with a class action claiming it sold dog grooming products and ceramic food bowls with dangerous levels of lead and DEHP—chemicals linked to cancer and other serious health risks—without proper warnings.

Other Pet Product Makers Face Consumer Claims

Other pet product makers are also battling consumer claims. Mars, Inc., the owner of Pedigree, is being sued over kibble allegedly containing unsafe vitamin D levels, while Barkworthies and ZuPreem face challenges over misleading “odor-free” and “natural” labels.

Cavas is asking to represent all Autoship customers who joined between 2022 and today. The class action seeks damages for the alleged overcharges and an order requiring Chewy to fix its billing practices.

Plaintiffs' Attorneys

• Gainey McKenna & Egleston 
• James Ruggieri

Do you use Chewy’s autoship function for your pet’s needs? Let us know about your experience in the comments section below.