Amazon sued over tariff refunds

Amazon.com was sued on May 15 in federal court in Seattle by consumers who say the company kept tariff-related price increases after the U.S. Supreme Court ruled the underlying Trump-era import duties were unlawful. The proposed class action targets price hikes on imported goods sold during the period when tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, were in force. Plaintiffs say Amazon passed those costs through to shoppers and then did not pursue the same refund route other companies have begun using. Amazon did not respond to a Reuters request for comment. ### Which tariffs are at the center of the lawsuit? The Supreme Court in February ruled 6-3 that President Donald Trump overstepped his authority by using IEEPA to impose sweeping tariffs, according to Reuters and other reports on the decision’s aftermath. That ruling opened the door for importers to seek money back from the federal government for duties already paid. Reuters reported that thousands of companies have begun seeking billions of dollars in refunds following the decision. (money.usnews.com) The refund system runs through U.S. Customs and Border Protection and is available to importers of record, not retail customers. CNBC reported that more than 330,000 importers paid about $166 billion on more than 53 million shipments and that the first phase of the refund process covers only some entries, with payments likely to take months. (money.usnews.com) ### What do the consumers accuse Amazon of doing? The May 15 complaint says Amazon collected “hundreds of millions of dollars” in unlawful tariff costs by raising prices on imported goods before the Supreme Court ruling and then kept that benefit afterward. Reuters reported that the suit alleges Amazon has not sought refunds “not because it lacks a legal basis to do so,” but because it wants to “curry favor with Trump” by letting the government retain the money. (cnbc.com) The complaint says, “The problem is that the funds Amazon is using to stay in the President’s good graces do not belong to Amazon.” Washington state law is part of the case. Reuters said the plaintiffs assert unjust-enrichment claims and claims under Washington’s consumer-protection law. The suit argues that consumers cannot apply directly for tariff refunds even if they bore the higher prices. ### How is Amazon’s position different from UPS, FedEx and DHL? (money.usnews.com) UPS, FedEx and DHL have said they would file for tariff refunds and pass applicable money back to customers, according to CNBC and CBS News. That contrast appears repeatedly in coverage of the Amazon case because the lawsuit argues Amazon chose not to use the federal refund process that other companies were already using. (money.usnews.com) Amazon’s marketplace structure complicates the picture. Techlicious reported, citing the complaint and Amazon’s own seller materials, that Amazon says it is not the importer of record for products sold by third-party sellers using Fulfillment by Amazon or Seller Fulfilled Prime. For goods sold directly by Amazon, however, the lawsuit says Amazon was the importer of record and could seek refunds tied to those imports. (cnbc.com) ### What evidence does the complaint point to on pricing? The complaint includes a pricing comparison. Techlicious reported that during the tariff period Amazon raised prices on 1,200 low-cost goods by 5.2%, while Walmart cut prices on the same items by nearly 2%. That data point is part of the plaintiffs’ effort to show consumers, not Amazon, bore the tariff costs in the first place. (techlicious.com) Andy Jassy, Amazon’s chief executive, said in January at the World Economic Forum in Davos that “you start to see some of the tariffs creep into some of the prices,” according to Techlicious, citing a CNBC interview. Reuters also reported that the lawsuit points to White House blowback in April 2025 after a report that Amazon was considering displaying tariff costs on product listings, a report Amazon denied. (techlicious.com) ### What happens next in the case? The proposed class action was filed in the U.S. District Court for the Western District of Washington. Yahoo Finance, summarizing the complaint and early posture of the case, reported that class certification, damages and any mechanism for distributing refunds remain unresolved. Amazon’s next step is to answer or move to dismiss in district court, and any later fight over certification would determine whether the case can proceed on behalf of a broader group of shoppers. (techlicious.com) (finance.yahoo.com)