Amazon faces class action over alleged retention of unconstitutional tariff funds
Law firm Hagens Berman alleges Amazon refused to refund customers after US Supreme Court invalidated emergency tariffs, joining a wave of litigation against major retailers.
Amazon is the subject of a class action lawsuit in Seattle alleging the e-commerce giant retained hundreds of millions of dollars in tariffs that the US Supreme Court ruled unconstitutional. The complaint, filed by law firm Hagens Berman on May 5, claims the company raised prices on imported goods to cover these costs but refused to pass refunds on to customers after the tariffs were invalidated.
The lawsuit alleges that Amazon retained the funds to curry favour with President Donald Trump, allowing the federal government to keep the money rather than returning it to consumers. The court document states that the funds were wrongfully taken from customers to cover Import-Export Act (IEEPA) tariffs that have since been declared unlawful, and that Amazon’s decision to withhold them was a strategic move to stay in the President’s good graces.
The legal challenge follows a broader wave of litigation after the US Supreme Court ruled in March that sweeping emergency tariffs declared by President Trump were unconstitutional. Chief Justice John Roberts wrote that the Constitution vests taxation power in Congress, not the Executive Branch, declaring the tariffs unlawful. Following the ruling, thousands of companies filed legal challenges against the US government, with over 900 challenges recorded nationwide.
While many of the initial lawsuits involved businesses seeking refunds from the government, such as FedEx and Sony, consumers are increasingly seeking recuperation for money collected on overseas packages. Amazon is one of the first retail companies to face a class action specifically regarding its handling of tariff collections from shoppers. Similar legal challenges have been filed against Nike and Costco, which also face allegations that they have not passed on tariff refunds to customers.
The outcome of the Amazon lawsuit remains undetermined, as the allegations regarding the company’s motives and the exact amount of retained funds are claims made in the court document. The story was originally published by TheStreet on May 22, 2026.
