Nintendo faces lawsuit as customers demand tariff refund share
What's the story
A class action lawsuit has been filed against Nintendo of America, demanding the gaming giant pass on the money it expects to receive from tariff refunds. The lawsuit was filed in the US District Court for the Western District of Washington. It alleges that Nintendo has not promised any refunds to customers for duties they paid due to tariffs imposed by President Donald Trump's administration.
Allegations
Lawsuit details
The lawsuit accuses Nintendo of "unjust enrichment" and violating Washington state's consumer protection law. It argues that without court intervention, Nintendo could benefit from the same tariff payments twice - once through higher prices paid by consumers, and again from tariff refunds received from the federal government. The plaintiffs are seeking unspecified damages and restitution for consumers who bought Nintendo products during the tariff period.
Tariff details
Tariffs and their legal status
The tariffs in question were imposed by Trump in February 2025, under the 1977 International Emergency Economic Powers Act. The move was aimed at countering national emergencies and involved raising taxes on goods imported from nearly every country. However, the US Supreme Court struck down these tariffs in February 2026, ruling that the emergency powers law did not authorize such actions to counter national emergencies.
Revenue impact
Financial implications for Nintendo
Before the Supreme Court's ruling, the US government had collected over $160 billion from thousands of companies as tariff payments. Among these companies was Nintendo of America, which raised prices on several accessories by $5-$10 in April 2025 after the tariffs were imposed. The company attributed this price hike to "changes in market conditions."
Industry response
Broader implications of the lawsuit
The lawsuit against Nintendo is not an isolated case. Other companies, including EssilorLuxottica (Ray-Ban maker) and Lululemon, also face lawsuits seeking refunds for consumers. Some shipping companies like FedEx, DHL and UPS have promised to pass on the money to their customers. The outcome of these cases could have a significant impact on how businesses handle tariff refunds in the future.