Costco Faces Class Action Over Alleged 'Double-Dip' on Tariff Refunds

A major class action lawsuit accuses Costco of a brazen financial maneuver: collecting tariff costs from customers through higher prices, then seeking to pocket the full government refund for those same tariffs after they were ruled unlawful. The complaint, filed in a US District Court in Washington, alleges this scheme constitutes unjust enrichment, leaving the retail giant poised to recover the same payments twice—once from shoppers and once from the federal treasury.

The lawsuit hinges on public statements from Costco executives, which customers cite as evidence the company explicitly raised prices on goods like luggage, furniture, and appliances to cover the cost of Section 301 tariffs imposed during the Trump administration. However, after those tariffs were later deemed unlawful for certain items, Costco allegedly pursued refunds from the government without making a legally binding commitment to pass those savings back to the consumers who ultimately bore the cost. This creates a direct conflict between corporate profit and customer fairness.

The case places intense scrutiny on the opaque pass-through practices of major retailers during trade disputes. If the court does not intervene, the lawsuit warns, Costco could secure a windfall refund while consumers see no redress for the inflated prices they paid. The outcome could set a significant precedent for how retailers handle tariff-related pricing and refund obligations, potentially triggering similar claims across the retail sector.