Amazon sued over tariff refunds

Amazon.com was sued on May 15 in federal court in Seattle by consumers who say the company raised prices to cover Trump-era import tariffs and then failed to return that money after the duties were struck down. The proposed class action targets price increases on imported goods sold directly by Amazon, not products sold by third-party merchants, according to the complaint and a Reuters report. Plaintiffs say shoppers absorbed tariff costs through higher retail prices and were left without any path to recover that money once the legal basis for the tariffs collapsed. Amazon did not respond to Reuters’ request for comment. ### What exactly are the consumers accusing Amazon of keeping? Consumers in the lawsuit allege Amazon collected “hundreds of millions of dollars” by increasing prices on imported products while tariffs imposed under the International Emergency Economic Powers Act were in effect. The complaint says those tariff costs were passed through to retail buyers and that Amazon later chose not to pursue refunds from the federal government after the tariffs were invalidated. (money.usnews.com) The Seattle complaint asserts unjust enrichment and a violation of Washington state’s consumer-protection law. Reuters reported that the plaintiffs argue the money “does not belong to Amazon” because consumers, not the company, ultimately paid the higher prices. ### Which tariffs are at the center of the case? (money.usnews.com) The tariffs in dispute were imposed by President Donald Trump under IEEPA beginning in February 2025, according to the complaint and the Supreme Court record. The case before the justices asked whether IEEPA authorized a president to impose tariffs at all. (money.usnews.com) The U.S. Supreme Court ruled 6-3 on February 20, 2026, in Learning Resources, Inc. v. Trump that IEEPA did not authorize the president to impose those tariffs. The syllabus says Trump had used IEEPA to impose duties including 25% on most Canadian and Mexican imports and 10% on most Chinese imports, along with broader “reciprocal” tariffs of at least 10% on imports from all trading partners. (hbsslaw.com) ### Why can’t shoppers just get refunds from the government themselves? Reuters reported that consumers are not eligible to seek tariff refunds directly from the government for higher prices they paid while the duties were in force. The lawsuit says that leaves buyers dependent on the importer of record to pursue refunds and, if money is recovered, to pass it back through the chain. (supremecourt.gov) Hagens Berman, the law firm behind the case, said the importer of record is the party entitled to recover IEEPA tariff payments from the government. The complaint’s theory is that Amazon, as the direct seller of some imported goods, could seek those refunds but has not done so. (money.usnews.com) ### What evidence do the plaintiffs point to on Amazon’s pricing? The complaint says Amazon began increasing prices on imported products it sold directly when the tariffs started in February 2025. Hagens Berman said the suit compares 1,200 low-cost items and alleges Amazon raised prices by 5.2% during the period while Walmart lowered prices on the same goods by nearly 2%. (markets.financialcontent.com) Andy Jassy, Amazon’s chief executive, is cited in the complaint as having said tariffs could “creep into some of the prices.” That line is used by the plaintiffs to support their claim that tariff costs were passed through to consumers. ### Why does the complaint bring up Jeff Bezos and the White House? (hbsslaw.com) April 2025 is part of the plaintiffs’ narrative because Amazon faced White House criticism after a report that it was considering displaying how much of a product’s cost came from the tariffs. Reuters said Amazon denied it had considered listing tariff prices on its main retail site, but the report prompted Trump to call Executive Chairman Jeff Bezos to complain, according to the lawsuit. (hbsslaw.com) Steve Berman, Hagens Berman’s managing partner, said the firm believes Amazon backed away after the administration objected. Reuters reported that the lawsuit says Amazon did not seek refunds “because it seeks to curry favor with Trump,” an allegation that remains the plaintiffs’ claim, not a court finding. (money.usnews.com) ### Is Amazon the only company facing this kind of claim? Reuters reported that the Amazon case follows earlier consumer lawsuits against companies including Costco, Nike and FedEx over allegations that they failed to pass tariff refunds on to customers. Those cases point to a widening set of disputes over who bears tariff costs when duties are later unwound. (money.usnews.com) May 15 is the filing date for the Amazon complaint in the U.S. District Court for the Western District of Washington. The next steps are Amazon’s response to the complaint and any motion practice over whether the proposed class can proceed. (money.usnews.com)