Costco sued for seeking refunds on tariffs customers paid

A proposed class action lawsuit has been filed against Costco, accusing the retail giant of unjust enrichment by allegedly charging customers for tariff costs while simultaneously seeking refunds from the federal government. The complaint, submitted in a U.S. District Court in Washington, contends that Costco raised prices on certain goods to cover the tariff expenses, which it now aims to reclaim after they were deemed unlawful. The lawsuit claims that unless the court intervenes, Costco could potentially benefit from recovering the same tariff payments twice. Customers have pointed to statements made by Costco executives, which indicated that the company had increased prices during the tariff period. However, critics argue that Costco has not provided any legal assurance that it will return the excess charges to consumers who were affected. Instead of reimbursing customers, Costco announced during a March 2026 earnings call that it intends to use the anticipated tariff refunds to lower future prices. This decision has frustrated many members who believed Costco would maintain minimal profit margins to keep product prices as low as possible. The plaintiffs accuse Costco of attempting to gain a financial windfall from the tariff refunds, representing millions of consumers who purchased goods during the tariff period and experienced inflated prices linked to these tariffs. The customers argue that the potential refund pool, following the invalidation of the tariffs, is substantial, as Costco has already recouped costs through higher prices while standing to receive the same unlawful payments back from the government.