(Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images))
As Nintendo stands to reclaim millions in Trump tariff refunds, a pair of US customers are demanding the company pass those savings back to consumers.
On Tuesday, the customers filed a class-action lawsuit against Nintendo in a US District Court, which was first spotted by the Aftermath.
The lawsuit comes a day after the Trump administration kicked off a process for companies to claim $166 billion in refunds, following the Supreme Court's February ruling that struck down President Trump's "reciprocal" tariff policies, which ensnared numerous imports last year.
Nintendo is expected to apply for its share after it sued last month to secure a refund for the now-voided tariffs. However, the class-action lawsuit argues the refunds should go to US customers since they’re the ones who actually paid for them via more expensive Nintendo products.
“Unless restrained by this Court, Nintendo stands to recover the same tariff payments twice—once from consumers through higher prices and again from the federal government through tariff refunds, including interest paid by the government on those funds," the lawsuit says.
Plaintiffs include Gregory Hoffert of Fair Oak, California, and Prashant Sharan of Seattle, both of whom bought Nintendo products last year while the Trump tariffs were in effect. The lawsuit claims Nintendo engaged in “unjust enrichment” and violated Washington state’s consumer protection law.
“In practical terms, Nintendo stands to receive a windfall: it has already recouped tariff costs from consumers through higher prices, and it now stands in line to recover those same unlawful tariff payments from the federal government,” their lawsuit adds.
Nintendo isn’t alone in facing the legal threat. Other lawsuits have been filed against Lululemon and Costco over the same issue. Law firm Covington and Burling also warned last month that importers should prepare to fend off “suits brought by consumers alleging that they are entitled to share in any refunds.”
“We are seeing plaintiff recruitment efforts, and several lawsuits have already been filed—in the Northern District of Georgia, the Southern District of Florida, and the Eastern District of New York. In these actions, plaintiffs allege that importers are legally obligated to refund any tariff surcharges passed on to consumers in response to the IEEPA [International Emergency Economic Powers Act] tariffs,” the law firm added.
Still, at least a few companies have indicated they plan on reimbursing consumers after they receive their tariff refunds. Others might refrain from clawing back the funds, possibly to avoid angering the Trump administration. On Tuesday, the president indicated he’ll favor companies that don’t seek a tariff refund.
Nintendo didn’t immediately respond to a request for comment.