Class Action Claims Mr. Beast Burger Charged Hidden Tax on Fast Food in Oregon

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A proposed class action alleges Mr. Beast Burger has run afoul of Oregon law by charging a hidden sales tax on fast food.

The plaintiff, a Portland resident, claims to have been charged $3.16 more than the advertised price when he bought a Beast Style Burger Combo at defendant Virtual Dining Concepts, LLC’s location near the Portland State University Campus. According to the lawsuit, Mr. Beast Burger “misrepresented” the hidden charge as a tax even though the Oregon Unlawful Trade Practices Act prohibits companies from charging a sales tax on fast food. 

Per the suit, Mr. Beast Burger represented to the plaintiff that his order would cost $15.79. After reading his receipt, however, the plaintiff discovered that the stated price was “falsely advertised” given Virtual Dining Concepts added and collected an extra $3.16 charge, the case says. 

The allegedly hidden sales tax was omitted from the advertised price and misrepresented as a “tax” even though state law prohibits the charging of a sales tax on fast food, the suit claims.

“Defendant obtained a monetary benefit as increased profits through this material omission and misrepresentation by collecting undisclosed surcharges from plaintiff and the putative class members, entitling plaintiff and the putative class members to restitution in the amount of the overcharges defendant unjustly collected from them.” 

The lawsuit states that the plaintiff does not request damages at this time, only equitable and injunctive relief from Virtual Dining Concepts. According to the complaint, the plaintiff and proposed class members intend to seek damages in an amended complaint should the defendant “refuse[] to provide the identity and contact information for each putative class member” and notify these individuals that they can be reimbursed for the allegedly hidden sales tax upon request. 

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