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Etsy Exits Consumer Suit Over Pennsylvania Sales Tax on Masks

Nov. 8, 2021, 4:03 PM

Etsy.com LLC and Outdoor Research shook off a proposed class action alleging they violated Pennsylvania consumer protection laws by collecting Pennsylvania sales tax on face masks that were exempted by a Covid-19 emergency order, a federal court in the state said.

The collection of sales tax isn’t covered by the consumer law because it’s not trade or commerce, the U.S. District Court for the Western District of Pennsylvania said.

Vince Ranalli said that before the pandemic, non-medical face masks were considered clothing accessories and were subject to sales tax.

But they became exempt in March 2020 following the proclamation of ...

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