Amazon is facing a class action lawsuit over tax charges that were not refunded to consumers
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Amazon is facing a new class-action lawsuit that accuses the company of failing to recoup costs related to taxes it passed on to consumers at higher prices to appease the Trump administration.
Consumers allege in a proposed lawsuit filed in Seattle that the tech giant racked up hundreds of millions of dollars in illegal tax costs by raising prices on imported goods before the US Supreme Court ruled in February that President Donald Trump did not have the authority under the International Economic Emergency Act (IEEPA) to impose certain tariffs.
While thousands of companies have sought billions of dollars in refunds from the government following the ruling, Amazon has failed to do so, the complaint says, “not because it lacks a legal basis to do so, but because it wants to curry favor with Trump by allowing the federal government to keep the money.”
“Amazon's decision to withhold refunds serves its political and commercial interests at the direct expense of consumers who bear the cost of the tax in the first place,” the lawsuit said.
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The Amazon logo is displayed on the facade of the Amazon Germany headquarters in Parkstadt Schwabing, Munich, Bavaria, on Jan. 27, 2026. (Matthias Balk / photo alliance via Getty Images / Getty Images)
“The problem is that the money Amazon uses to stay in the President's programs is not Amazon's,” the complaint continued. “These funds were improperly taken from consumers to pay IEEPA prices that no longer apply. Those funds belong to the consumers who paid them.”
The lawsuit also says Amazon has “no intention” of reimbursing the costs passed on to consumers.
“In short, it created and sustained a storm of illegal government action, and consumers — not Amazon — are the ones left paying for it,” the document said.
The complaint accuses Amazon of unjust enrichment and violating Washington state's consumer protection law.
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The US Supreme Court ruled 6-3 that the International Emergency Economic Powers Act does not authorize the president to impose broad tariffs. (MANDEL NGAN/AFP via Getty Images/Getty Images)
The legal battle comes after consumers filed similar lawsuits against companies, including Nike and Costco, over allegations they failed to provide tax-related refunds to customers.
The lawsuit against Amazon also claims that the company confronted the White House in April 2025 after reports emerged that it was considering disclosing how much product costs came from IEEPA funds.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| AMZN | Company AMAZON.COM INC. | 264.14 | -3.08 |
-1.15% |
Amazon denied the report, saying it had never considered putting tax-related prices on its main retail site. However, the lawsuit says the report prompted Trump to call Amazon Chairman Jeff Bezos to complain.
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Nike and Costco are both tied up in tax-related lawsuits. (Natalie Behring/Bloomberg via Getty Images/Getty Images)
More than 2,000 companies have filed lawsuits in the US Court of International Trade seeking to recover tariffs paid on imported goods.
FOX Business has reached out to Amazon and the White House for comment.
Reuters contributed to this report.
