Consumers sue Amazon over tariff refunds

- Amazon.com was sued on May 15 in federal court in Seattle by consumers seeking refunds for tariff-related price increases tied to later-invalidated Trump tariffs. - The proposed class action says Amazon kept “hundreds of millions of dollars” after a February 20 Supreme Court ruling found the IEEPA tariffs unlawful. - The case is pending in the U.S. District Court for the Western District of Washington, where plaintiffs seek class certification.

Amazon.com was sued on May 15 in federal court in Seattle by consumers who say the company kept tariff-related costs that had been passed through in higher prices after the U.S. Supreme Court voided the underlying duties. The proposed class action was filed in the U.S. District Court for the Western District of Washington and alleges Amazon collected “hundreds of millions of dollars” from shoppers on imported goods sold directly by the company. Reuters reported that the suit accuses Amazon of unjust enrichment and violating Washington state’s consumer-protection law. Amazon did not respond to a request for comment, according to Reuters. ### When was the case filed, and what does it accuse Amazon of doing? May 15 is the filing date listed by Hagens Berman Sobol Shapiro, the law firm representing the consumers. The complaint says Amazon raised prices on imported products it sold directly to shoppers after the Trump administration began imposing tariffs under the International Emergency Economic Powers Act, or IEEPA, in February 2025, then chose not to pursue refunds after those tariffs were invalidated. (finance.yahoo.com) Reuters said the consumers allege Amazon collected hundreds of millions of dollars in unlawful tariff costs by raising prices on imported goods before the Supreme Court ruled. The lawsuit says the money “do[es] not belong to Amazon” because the added costs were borne by consumers, not the company. ### What changed in February 2026? February 20, 2026, is the date the U.S. (hbsslaw.com) Supreme Court ruled 6-3 that IEEPA did not authorize President Donald Trump to impose the tariffs at issue. The case was Learning Resources, Inc. v. Trump, according to the court’s opinion. Reuters said the court concluded Trump had overstepped his authority by using IEEPA to impose sweeping tariffs. Techlicious reported that only importers of record can seek tariff refunds from U.S. (finance.yahoo.com) Customs and Border Protection. That means consumers cannot apply directly for refunds from the government, even if they paid higher retail prices while the tariffs were in effect. ### Why is Amazon’s role as importer important here? Amazon’s marketplace structure matters because not every product sold on its platform was imported by Amazon itself. (supremecourt.gov) Techlicious reported that Amazon says it is not the importer of record for products sold by third-party merchants through Fulfillment by Amazon or Seller Fulfilled Prime, meaning it would have no refund claim on those goods. For products Amazon sold directly, however, the lawsuit says Amazon was the importer of record and could seek refunds from the government. (techlicious.com) The complaint covers consumers who bought imported products through Amazon during the tariff period, according to Hagens Berman. The law firm said the relevant period ran from February 2025 to February 2026. ### What facts do the plaintiffs cite to support the case? The lawsuit points to pricing data and to Amazon’s public discussion of tariffs. (techlicious.com) Hagens Berman said the complaint alleges Amazon increased the price of 1,200 low-cost goods by 5.2% during the tariff period, while Walmart lowered prices on the same items by nearly 2%. Techlicious separately cited the same figures from the complaint. (hbsslaw.com) Reuters reported that the lawsuit also cites an April 2025 episode in which Amazon considered displaying tariff costs on product listings, drew criticism from the White House, and then abandoned the plan after Trump called Amazon founder Jeff Bezos, according to the complaint. The plaintiffs say that sequence supports their claim that Amazon declined to seek refunds in order to “curry favor” with Trump. That allegation is from the complaint and has not been tested in court. (hbsslaw.com) ### What happens next in the case? The U.S. District Court for the Western District of Washington will next handle the proposed class action, including any response from Amazon and the plaintiffs’ request for class certification. Reuters said the suit follows earlier consumer cases against companies including Costco, Nike and FedEx over whether tariff refunds should be passed on to customers. (finance.yahoo.com)

Get your own daily briefing

Scout delivers personalized news, insights, and conversations tailored to your role and industry.

Download on the App Store

Shared from Scout - Be the smartest in the room.