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 U.S. Supreme Court struck the tariffs down. The proposed class action was filed in the U.S. District Court for the Western District of Washington, according to Hagens Berman, the law firm representing the plaintiffs. The complaint says Amazon passed tariff costs through to shoppers on imported goods sold directly by Amazon beginning in February 2025. (hbsslaw.com) It says the company then chose not to seek reimbursement from the federal government after the tariffs were invalidated. The case turns on a narrower question than the Supreme Court fight that came before it. On February 20, 2026, the Supreme Court held 6-3 that the International Emergency Economic Powers Act did not authorize President Donald Trump to impose the tariffs at issue. That ruling opened a path for importers to pursue refunds from the government, but it did not itself decide how any recovered money should be distributed to consumers. ### What exactly are the plaintiffs accusing Amazon of keeping? The May 15 complaint accuses Amazon of retaining “hundreds of millions of dollars in unlawful tariff costs” that it had already built into retail prices paid by shoppers. The plaintiffs say those costs were collected from consumers while the tariffs were in force and were never returned after the tariffs were voided. (hbsslaw.com) Hagens Berman said the suit covers imported products sold by Amazon between February 2025 and February 2026. The complaint alleges that if Amazon seeks or could seek refunds tied to those tariffs, the money does not belong to Amazon because the company shifted the costs to buyers at the time of sale. (supremecourt.gov) ### Why does the lawsuit focus on the refund process instead of the tariffs themselves? The Supreme Court’s February 20 ruling settled the legal question of whether IEEPA allowed the tariffs. The new dispute is about restitution: who can claim the money back from the government and whether consumers have any right to funds that were first paid by importers but then passed through in higher prices. (finance.yahoo.com) The importer of record is generally the party that can seek a customs refund from the government, according to Hagens Berman and legal analyses published after the ruling. That structure matters here because Amazon, not individual shoppers, would control whether to file for reimbursement on goods it imported itself. (hbsslaw.com) ### What does the complaint say Amazon did instead? The complaint says Amazon decided not to pursue refunds from the federal government and instead kept the benefit of higher prices already charged to consumers. Hagens Berman quoted the lawsuit as saying, “The problem is that the funds Amazon is using to stay in the President’s good graces do not belong to Amazon.” The firm also said the suit alleges Amazon made that choice to “curry favor” with Trump by allowing the government to retain the tariff money. (supremecourt.gov) Yahoo Finance, citing the complaint, reported that Amazon has “not returned any portion of those costs it passed on to consumers.” Reuters reported on May 15 that the suit asserts unjust-enrichment and Washington consumer-protection claims. (hbsslaw.com) Reuters also said Amazon did not respond to a request for comment. ### Are other companies handling tariff refunds differently? UPS, FedEx and DHL have said they are pursuing refunds through the government process and intend to pass money back to customers who originally bore those charges, according to company guidance and news reports. UPS says U.S. Customs and Border Protection is accepting refund requests in phases, with Phase One covering certain payments made starting January 30, 2026. (hbsslaw.com) Those examples do not resolve the Amazon case, but they show the mechanism the plaintiffs say Amazon chose not to use. The complaint points to that choice as the basis for asking a court to order restitution and other relief. (finance.yahoo.com) ### What happens next in the Seattle case? The Western District of Washington will next deal with the early procedural stages of the proposed class action, including class certification, damages and how any refund would be distributed if the plaintiffs prevail. Yahoo Finance reported that those questions remain unresolved, and the Hagens Berman filing page identifies the case as pending in federal court in Seattle. (ups.com) The next public milestones are likely to be Amazon’s response to the complaint and any scheduling orders from the Seattle federal court. Those filings will determine whether the case proceeds as a class action and whether the plaintiffs can force Amazon to seek or share any tariff-related recovery. (hbsslaw.com) (finance.yahoo.com)