"Customers are hoping that consumer protection laws will require Costco to refund money they paid due to tariffs. The proposed class includes all persons in the United States who purchased goods from Costco during the period February 1, 2025, through February 24, 2026, that were subject to tariffs that Donald Trump unlawfully imposed under the International Emergency Economic Powers (IEEPA) Act."
"Branding Costco's plan to keep the refunds as 'unscrupulous, outrageous, offensive to the public conscience, and/or marked by injustice, partiality, or deception,' they've asked for punitive damages if its actions are deemed unlawful."
"The share of businesses passing on more than half of tariff costs has risen to 34 percent, more than doubling from 13 percent in May of last year. Further price increases appear imminent, with 55 percent of executives planning to raise prices."
Customers are pursuing a class action against Costco for refunds on tariff costs imposed unlawfully under the IEEPA Act. The proposed class includes all U.S. customers who purchased goods from Costco during a specified period. If successful, Costco may face significant financial repercussions, including punitive damages. The case could set a precedent for other businesses regarding tariff surcharges, potentially leading to more customer lawsuits. A recent KPMG survey indicates that a growing number of businesses are passing on tariff costs to consumers, with further price increases expected.
Read at Ars Technica
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