Nike Sued by Consumers for Not Refunding Tariff Costs
The proposed class action says Nike raised prices by up to $10 and could keep tariff refunds after paying about $1 billion in duties.
- Consumers filed a class action lawsuit against Nike in a Portland, Oregon Court, alleging the company failed to pass on tariff refunds while previously raising prices to offset those costs.
- The Supreme Court ruled in Feb that President Donald Trump lacked authority to impose certain tariffs under the International Emergency Economic Powers Act, prompting creation of a federal refund portal.
- Plaintiffs allege Nike raised footwear prices by $5 to $10 and apparel by $2 to $10 to offset tariff costs, claiming "Unless restrained by this court, Nike stands to recover the same tariff payments twice."
- Customs and Border Protection will begin processing refunds through the online tool soon, though Nike has made no legally binding commitment to return tariff-related overcharges to consumers who paid them.
- In a recent conference call, Nike reported that it expects tariffs to remain a material year-over-year headwind to gross margin only through the next fiscal quarter.
11 Articles
11 Articles
Lawsuit demands Nike return tariff refunds to consumers
A class action lawsuit has been filed to return unconstitutional tariff charges to consumers, as Nike has not committed to returning the funds to them despite being entitled to refunds of the duties they previously paid to U.S. Customs and Border Protection.
Nike faces class action lawsuit accusing it of pocketing tariff refunds while charging consumers more
Nike is facing a new class action lawsuit accusing the company of failing to refund tariff-related costs it passed on to consumers through higher prices.In the proposed lawsuit, consumers argue Nike should not be allowed to keep "significant" refunds it may receive after the U.S. Supreme Court ruled in February that the president lacked authority under the International Emergency Economic Powers Act (IEEPA) to impose certain tariffs.Nike has sai…
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