As U.S. Customs and Border Protection prepares to launch Phase 1 of its streamlined tariff refund process on April 20, a wave of consumer class action lawsuits is targeting brands, retailers, and importers seeking tariff-related payouts. Because consumers will not directly receive government refunds, plaintiffs across the country are filing putative class actions against major companies—including Costco, Federal Express, and Lululemon—alleging that defendants raised prices in reliance on unlawful IEEPA tariffs and that consumers are entitled to refunds of what they paid. With the estimated cost to consumers reaching approximately $1,751 per household and total IEEPA tariff revenue calculated at $165 billion, these cases are expected to grow considerably as plaintiffs’ firms focus on this area.

Claims are typically framed as equitable causes of action, such as unjust enrichment, or as statutory claims under state consumer protection laws. Despite the fact-intensive nature of these claims, strong defenses are available: companies may be able to invoke mandatory arbitration or class waiver clauses, and defendants can argue that prices set under then-lawful tariffs were neither unjust nor inequitable. Companies should be prepared to defend against these suits and should carefully consider their internal and external messaging to consumers regarding price increases and tariff refunds.

For more on this topic, read our latest client alert.