Chewy, an online pet supply company, has been named in a class-action lawsuit out of Rhode Island which claims it uses deceptive trade practices by overcharging its Autoship customers.
The case was brought by Alix Cavas in the U.S. District Court in Rhode Island, and accuses the retailer of charging sales tax on the full price of the items delivered to customers via the company’s Autoship option, according to the Providence Journal.
Chewy advertises its Autoship as a way for pet owners to set up automatic shipments of stock including dog food or cat litter at discounted rates.
According to Cavas’ complaint, Chewy’s Autoship terms state a specific method for calculating how customers using the service will be charged. The terms, according to the complaint, state that customers will be charged “the price of the item, less the Autoship & Save discount or any other discount, if applicable, plus any applicable shipping charges and sales tax.”
The lawsuit argues that the wording of the terms means that the sales tax is supposed to be calculated after the Autoship discount is applied.
“Relevant to this action, where a retailer offers a discount (i.e., a percentage or dollar reduction in price) on a good or service, sales tax is calculated by reference to the discounted price of that good or service, not on the full price,” the lawsuit states.
That’s not what Chewy is doing, according to Cavas. The lawsuit alleges that Chewy’s “deceptive trade practices overcharges its Autoship customers more sales tax than is due on goods which are discounted through the Autoship program.”
In other words, rather than calculating the tax once all discounts have been applied, Chewy’s Autoship calculates the tax before, and customers allegedly pay more than they should.
The filing claims that “Chewy offered its Autoship customers a discount on their Autoship orders. This discount is a cash discount … in the form of 35 percent off a customer’s first order and then 5 percent off Autoship orders thereafter.”
It goes on to argue that, had Cavas and the other class members known they’d be charged sales tax on the full price of the items they were auto-shipping, they would not have enrolled in the program.
“If [Cavas] and/or the Class members had knowledge of defendant’s unfair methods of competition and deceptive acts or practices described herein, they would not have enrolled on to Chewy’s Autoship program, or they would have been made aware that the Autoship program did not offer a ‘discount,'” the complaint says.
Cavas is being represented by New York law firm Gainey McKenna & Egleston, and by a local attorney, James Ruggieri.
The Independent has requested comment from Chewy and Cavas’ attorneys.
Anyone who was enrolled in Chewy’s Autoship program between 2022 and September 5, 2025, can join the class action lawsuit.
