Dunkin' Donuts Accused Of Overcharging Customers, Report Alleges

According to the New York Post, Dunkin Brands Group Inc (NASDAQ: DNKN), parent company of Dunkin' Donuts, faces a lawsuit which alleges the company wrongfully collected sales taxes on certain items.

The suit against Dunkin' Donuts claims that a Dunkin' Donuts store in Ft. Lee, New Jersey, charged a 7 percent sales tax on unsweetened bottled water and bags of ground coffee. A store in New York City similarly charged a sales tax on pre-packaged coffee bean.

A dozen different Dunkin' Donuts stores are also alleged to overcharge their customers, the suits filer, Carl Mayer told the New York Post. By his own estimates, Dunkin' Donuts stores across New York and New Jersey registered an additional $14 million in sales due to sales tax overcharges.

Finally, the New York Post noted that a company spokeswomen is reaching out to its franchisees to "get to the bottom of the issue."

Shares of Dunkin Brands were trading higher by nearly 2 percent at $42.28 Tuesday morning.