Extreme Couponing at Food Town, Is this coupon fraud? Coupons at Food Town?

I've recently started couponing and very recently started couponing at Food Town. What I saw at several stores around the Houston/Sugar Land area really disturbed me. I wanted to know if what I saw is coupon fraud. At one location a cashier was pulling 55� peelie coupons off of products of Shout so he could send them in to the manafacture letting the store be reimbursed without any customer having redeemed them. At three other Food Towns I spied them manually entering in taxable coupons as non taxable/food coupons so an item would be doubled taxed. Here in Texas as well as a few other states by law the manafacture must pay the tax for the consumer. It's keyed into the coupons. So Food Town is letting their customer pay taxes on something that has already been paid for by the manafacture. New extreme couponers probably wouldn't have even noticed. Anyway, is this coupon fraud?