Shoppers allege Amazon and Costco built unlawful tariff costs into retail prices and now owe refunds. Importers have a federal refund path, while consumer cases must prove retailers should return the markup. At issue are tariffs imposed under the International Emergency Economic Powers Act, a law for national emergencies.
According to DLA Piper's summary of the ruling, the Supreme Court ruled 6-3 on Feb. 20, 2026 in Learning Resources v. Trump that the Act does not authorize tariffs.
Table of Contents
- What the Supreme Court struck down
- What shoppers allege against Amazon and Costco
- Why importers have a clearer refund path
- What happens next for consumer claims
What the Supreme Court struck down
The decision invalidated tariffs tied to drug-trafficking emergencies and reciprocal tariffs. DLA Piper reports the ruling removed the legal basis for those import duties.
The ruling did not send money back to shoppers by itself. It created two separate refund fights, one for importers and one for consumers.
What shoppers allege against Amazon and Costco
According to Chain Store Age's report on the Amazon suit, two consumers filed a proposed class action in Seattle federal court in May 2026. They allege Amazon raised prices on IEEPA-affected imports from Feb. 2025 to Feb. 2026 and collected hundreds of millions in unlawful costs.
According to MarketWatch reporting via Morningstar, Costco member Matthew Stockov filed a proposed class action on March 11, 2026 in Illinois. He seeks restitution for tariff-driven price increases on electronics, appliances, household goods, food and health products. Both complaints argue retailers kept the tariff markup rather than absorbing it. Shoppers seek repayment through class-action restitution, not through customs.
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Why importers have a clearer refund path
According to Katten analysis via JD Supra, Customs and Border Protection opened the CAPE portal in its ACE system on April 20, 2026. Importers and brokers can redeclare entries and claim IEEPA refunds, estimated at $166 billion for about 330,000 importers. Reason's Volokh Conspiracy reports Court of International Trade Judge Eaton ordered refunds to all importers of record that paid the unlawful duties. The order covers eligible importers even if they did not file their own lawsuits.
Retail Insight Network reports Costco separately sued the U.S. government on Nov. 28, 2025 in the Court of International Trade. Costco asked for a declaration that the tariffs were unlawful and a full refund of duties it paid.
What happens next for consumer claims
Consumers cannot file in the CAPE portal because only the importer of record may claim. Mondaq/Katten analysis explains shoppers must rely on state consumer-protection and restitution theories. Those theories face an uphill battle.
Analysts cited in that analysis say shoppers must connect a specific retail price increase to an unlawful duty. Shoppers watching the cases should save receipts, order confirmations and product listings showing prices paid during the Feb. 2025 to Feb. 2026 period.
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