Amazon is the subject of a new class action lawsuit filed in Seattle, accusing the company of failing to refund hundreds of millions of dollars in tariff-related costs that were passed on to consumers through higher prices on imported goods. The lawsuit alleges that Amazon collected these unlawful tariff costs prior to a U.S. Supreme Court ruling in February, which determined in a 6-3 decision that President Donald Trump lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs [1].
According to the complaint, while thousands of companies have sought billions of dollars in refunds from the government following the Supreme Court's decision, Amazon has not pursued such refunds. The plaintiffs claim this is not due to a lack of legal basis, but rather an effort by Amazon to curry favor with the Trump administration by allowing the federal government to retain the funds. The lawsuit further alleges that Amazon's decision serves its own political and commercial interests at the expense of consumers, who originally bore the costs of the tariffs [1].
The complaint accuses Amazon of unjust enrichment and violating Washington state’s consumer-protection law, stating that the company has no intention of returning the costs passed on to consumers and has generated a windfall from unlawful government action. The legal action against Amazon follows similar lawsuits filed against other companies, including Nike and Costco, over claims they failed to pass tariff-related refunds on to customers [1].
The lawsuit also references an incident in April 2025, where Amazon allegedly faced White House pushback after reports emerged that it was considering displaying the portion of product costs attributable to IEEPA tariffs. Amazon denied these reports, stating it never considered listing tariff-related prices on its main retail site. However, the lawsuit claims that the report prompted President Trump to call Amazon Executive Chairman Jeff Bezos to complain [1].
On the market side, Amazon.com Inc. (AMZN) shares closed at $264.14, down $3.08 or 1.15% [1]. More than 2,000 companies have filed suits in the U.S. Court of International Trade seeking to recover tariffs paid on imported goods [1].
CONCLUSION
The class action lawsuit against Amazon highlights significant legal and reputational risks for the company, as it faces allegations of unjust enrichment and consumer protection violations related to tariff costs. The market responded negatively, with Amazon shares declining by 1.15%. The outcome of this case could have broader implications for other companies involved in similar disputes over tariff-related refunds.