Costco Accused of Unjust Enrichment in Tariff Refund Lawsuit

A proposed class action has accused Costco of unjust enrichment after the retail giant allegedly made customers pay for tariffs, then planned to pocket the full refund after they were deemed unlawful.

Costco "collected the tariff costs from consumers through elevated pricing, while simultaneously seeking refunds of the same tariff payments from the federal government," the complaint alleged. Unless the court intervenes, "Costco stands to recover the same tariff payments twice."

Filed in a US District Court in Washington, the lawsuit points to public statements from Costco executives that customers said made it clear that the company had raised prices on some goods while the tariffs were in effect. But the company has since offered "no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them."

Costco has been accused of potentially profiting twice - by passing on tariff costs to customers and then keeping the full refund from the government. The lawsuit aims to prevent the retail giant from unjustly enriching itself at the expense of its own customers.

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The proposed class action comes in the wake of the Supreme Court's recent decision to block President Trump's emergency tariffs, which could trigger billions in refunds to companies and consumers. Critics argue that Costco should be required to return any tariff-related overcharges directly to the customers who paid them, rather than pocketing the refunds.

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The lawsuit alleges that Costco's actions violate principles of unjust enrichment and amount to an unfair business practice. If successful, the class action could force the retail giant to repay customers who were impacted by the tariff-related price hikes.

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The outcome of this case could set an important precedent for how companies handle tariff refunds and their responsibility to pass savings back to consumers. As the legal battle unfolds, all eyes will be on Costco and whether it will be required to make its customers whole.