A San Francisco resident has accused a well-known pizza chain of deceitful practices, alleging they charged customers fake taxes to boost profits. Alexander Xue filed the complaint in the Superior Court of California, County of San Francisco, on July 18, 2024, against Domino’s Pizza LLC and ASI Foods Inc.
According to the court documents, Xue visited a Domino's Pizza location at 3116 Noriega St in San Francisco on June 28, 2024. After ordering a medium pizza with various toppings and paying $23.74 plus an additional $3.47 in taxes, Xue realized that the tax rate applied was significantly higher than the standard 8.625% sales tax rate in San Francisco. The tax charged amounted to 14.625%, which led him to suspect fraudulent activity.
Xue alleges that Domino’s Pizza LLC and ASI Foods Inc knowingly inflated the sales tax rate by an additional 6% without disclosing this to customers. He claims that this practice was designed to increase their gross profits without raising menu prices directly, which could deter potential customers due to higher visible costs. "Defendants knowingly, illegally, designedly, and fraudulently inflated the legal sales tax rate charged to all customers by 6.00%," Xue stated in his complaint.
The plaintiff further asserts that the defendants did not remit these excess taxes to the California Department of Tax and Fee Administration (CDTFA), instead pocketing the extra money for themselves. This act constitutes a violation of several California laws including Business and Professions Code §§17200 et seq., §§17500 et seq., and Civil Code §§1750 et seq., which prohibit unfair competition, false advertising, and deceptive business practices.
Xue is seeking multiple forms of relief from the court: actual damages according to proof; punitive damages; injunctive relief preventing Domino’s from continuing these practices; refunds for all affected customers; reimbursement for his own overcharged taxes; payment of all improperly collected taxes to the state; and coverage of his legal costs including filing fees and service process fees.
The case has been assigned Case Number CGC-24-616567 with Alexander Xue representing himself as Plaintiff pro se.