Amazon is facing a major new class-action lawsuit from consumers demanding refunds for inflated product prices caused by a series of sweeping tariffs that the U.S. Supreme Court later ruled were illegal.
The lawsuit, filed in a Seattle federal court, accuses the e-commerce giant of pocketing hundreds of millions of dollars by raising prices on imported goods to cover the costs of tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act (IEEPA). In February, the Supreme Court struck down those tariffs in a 6-3 decision, ruling that the administration had overstepped its constitutional authority, News.Az reports, citing Reuters.
While thousands of U.S. companies have moved quickly to claim billions of dollars in refunds from the federal government following the landmark ruling, the lawsuit alleges that Amazon has intentionally sat on its hands. According to the complaint, Amazon’s refusal to pursue refunds is a calculated political move to “curry favor” with the administration, essentially leaving the federal government with cash that belongs to everyday shoppers.
Because everyday consumers cannot legally petition the government directly for tariff refunds, they are entirely dependent on retailers to reclaim the funds and pass them down. The lawsuit explicitly claims that Amazon is using customer money to maintain political goodwill.
To back up claims of a political motive, the lawsuit highlights a tense April 2025 incident where Amazon reportedly considered adding a line item to its listings showing customers exactly how much of a product’s price went toward the IEEPA tariffs. The White House publicly blasted the idea as a “hostile and political act,” prompting a direct phone call between Donald Trump and Amazon Executive Chairman Jeff Bezos, after which Amazon immediately killed the plan.
Filed by the law firm Hagens Berman, the lawsuit seeks damages for unjust enrichment and violations of Washington state’s consumer protection laws. Amazon has not yet commented on the litigation, which follows similar tariff-related consumer lawsuits recently leveled against other retail giants like Costco, Nike, and FedEx.