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Costco urges US judge to reject consumer class action over tariff refunds

By Mike Scarcella

WASHINGTON, May 19 (Reuters) - Costco Wholesale COST.O has asked a federal judge to dismiss a proposed class action claiming the retail giant owes customers refunds for higher prices it charged before the U.S. Supreme Court struck down import tariffs imposed by President Donald Trump.

In a filing on Monday in Chicago federal court, Costco called the lawsuit speculative and said the customer who lodged the case suffered no harm.

“His own allegations establish that he freely chose to purchase valuable products for accurately posted prices,” Costco said. It said the plaintiff “got what he paid for, and Costco never suggested that it would (or even might) later refund part of the purchase price.”

Costco is one of thousands of companies that sued the Trump administration seeking to recover billions of dollars in tariffs the government collected. The administration has since set up a refund system.

Costco and a lawyer for the plaintiff did not immediately respond to requests for comment.

The lawsuit seeks a declaration that Costco must return to customers any refunds it receives for tariffs paid under the International Emergency Economic Powers Act (IEEPA).

The company said it has not yet received any refunds and it is unclear when it might do so or in what amount, or whether any refunds would relate to specific purchases.

It added that it “has not yet determined exactly how it would share value from any tariff refunds with its members,” echoing Chief Executive Ron Vachris’ statement in March that the company will make a plan “if and when we receive any refunds.”

Costco also argued that a retailer is not liable if costs that led to a price increase “later went away.”

The lawsuit against Costco follows a wave of similar cases by consumers accusing companies including Amazon, Nike and FedEx of failing to pass tariff refunds on to customers.

The case is Matthew Stockov v. Costco Wholesale, U.S. District Court, Northern District of Illinois, No. 1:26-cv-02734.

For plaintiff: George Zelcs of Korein Tillery

For defendant: Brad Brian and Elaine Goldenberg of Munger, Tolles & Olson, and Christopher Wilson of Perkins Coie

Read more:

Shoppers sue Amazon for not refunding Trump tariff costs

Nike sued by consumers for not refunding tariff costs

FedEx customers sue company for tariff refunds after US Supreme Court ruling

(Reporting by Mike Scarcella)

((Email: mike.scarcella@thomsonreuters.com; Phone: 202-985-8228.))

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