Schnucks Markets is giving out as much as $6.3 million as part of a class action settlement to reward the chain's loyalty program members who used points at Schnucks stores in the past six years.
As part of the settlement, customers who redeemed program reward points 鈥攚hich are based on the amount spent at the store 鈥斅爋n tax-eligible items bought at a Schnucks store in Missouri between May 2, 2020 and Aug. 7 can receive a one-time payment of $7.
A 最新杏吧原创 County Circuit Court judge gave preliminary approval of the settlement last month.
The resolution comes after a 2025 lawsuit claimed that the local company charged customers sales tax on the full price of purchases, instead of the lower, discounted total tallied after the rewards points were applied to the sale.
In May 2025, Sharon Garcia, of University City, filed suit in 最新杏吧原创 County Circuit Court against the local grocery chain. Through her attorneys, Garcia claimed that Schnucks illegally charges and collects 鈥渟ales tax鈥 on the full retail price of products bought before applying reward points discounts.
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Garcia's attorneys argue that Schnucks rewards points should be excluded from the sales tax base and not subject to Missouri sales tax when used by a customer to lower the sales total.
On March 30, 2025, Garcia bought items from Schnucks using her rewards points she earned, which entitled her to $3 off her purchase. She was required to pay a sales tax on the total amount of her purchase before the $3 off was applied, the suit states.
鈥淏ecause Schnucks collected excess monies on this transaction, (Garcia) paid more for the products she purchased, in excess of what they were actually worth,鈥 the suit reads. 鈥淪chnucks materially misled and failed to adequately inform reasonable consumers.鈥
Schnucks denies all claims and any wrongdoing. As part of the settlement, Schnucks will change its sales tax calculation practices, no later than March 31, 2027, so that reward point redemptions are treated as a pre-tax discount.
鈥淚t is important to clarify that Schnucks did not retain any of the sales tax collected during these transactions; 100% of these funds were fully remitted to the Missouri Department of Revenue,鈥 a statement provided by Schnucks spokesperson Paul Simon reads. 鈥淲e are updating our tax calculation methodology to ensure ongoing compliance.鈥
鈥淭his settlement allows us to reach an expedient, agreeable solution and move forward with clarity, allowing our teams to remain focused on our customers and the communities we serve,鈥 the statement continues.
The plaintiffs' counsel can request up to $1.98 million in attorneys fees and costs from Schnucks, according to the settlement. Attorneys representing Garcia did not immediately respond to a request for comment.
Rewards members have until Nov. 3 to submit a claim in order to be eligible to receive a cash payment of $7.
For claim forms and more information, customers can visit or call 1-877-465-4814.
A final approval hearing for the settlement will be held at 9 a.m. on Dec. 4.
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