Amazon faces class action over refusal to refund tariff costs
While competitors such as DHL, FedEx, and Nintendo pursue restitution or refunds, Amazon is accused of keeping funds passed on to consumers to curry favour with the Trump administration.
Amazon is facing a class action lawsuit in Seattle, first reported by Reuters, for failing to refund customers for price increases caused by tariffs instituted by the Trump administration. The suit, filed on Friday, accuses the online retail giant of profiting from "hundreds of millions of dollars in unlawful tariff costs" and retaining these funds to curry favour with the administration.
The legal action follows a 6-3 decision from the US Supreme Court that ruled against the legality of the sweeping tariff policy. Following this ruling, corporations were permitted to recover restitution for these costs, with several companies confirming to CNBC that they had begun receiving money back from the US government. However, the lawsuit claims Amazon has not engaged in this refund process, arguing instead that it is allowing the federal government to retain the funds.
"Amazon has not returned any portion of those costs it passed on to consumers, and it has no intention of doing so," the lawsuit read. "It has, in short, generated and retained a windfall from unlawful government action, and consumers — not Amazon — are the ones left paying for it." The complaint alleges that the retailer has no intention of returning the costs passed on to consumers, despite having the legal entitlement to recover them.
This stance contrasts sharply with industry peers. Shipping companies such as DHL, FedEx, and UPS, which were impacted by the tariffs, have initiated refund processes and intend to pass the proceeds onto affected customers. Other entities have taken more aggressive legal routes; Nintendo, for instance, filed a lawsuit against the US government to recover the imposed tariffs required to get its products into the country.
Engadget has reached out to Amazon for comment on the lawsuit and stated it would update the story upon receiving a response. As of the report, the specific amount of money Amazon has retained remains an allegation within the lawsuit rather than a verified financial figure.
