Nintendo of America is facing a proposed class action lawsuit after two customers accused the gaming giant of retaining profits tied to tariff refunds instead of passing them back to consumers.
The lawsuit claims the company raised prices during the Trump-era tariffs and may now benefit from government reimbursements without compensating buyers who paid higher costs.
Trump-Era Tariffs Spark Legal Dispute
Filed in the U.S. District Court for the Western District of Washington, the complaint alleges violations of Washington consumer protection laws and argues that Nintendo engaged in "unjust enrichment" by keeping both higher retail prices and potential federal refunds.
The case is linked to tariffs imposed in February 2025 under former U.S. President Donald Trump's trade policies. The measures used emergency powers to tax imported goods from multiple countries, impacting electronics and gaming hardware.
However, the U.S. Supreme Court later ruled the tariffs invalid, stating that the emergency powers law did not authorize such broad import taxes. This decision opened the door for affected companies to request refunds for duties already paid.
The lawsuit alleges that Nintendo was among the companies impacted and passed those additional costs directly to consumers through higher retail pricing.
Switch Price Increases Under Scrutiny
As spotted by Forbes, the complaint said that Nintendo raised prices across multiple products during the tariff period.
Accessories reportedly increased by $5 to $10, while systems such as the Nintendo Switch Lite and Nintendo Switch OLED Model also saw price adjustments in the U.S. market.
The plaintiffs argue that consumers absorbed these costs unfairly and should receive compensation if Nintendo successfully recovers tariff-related refunds from the government.
The lawsuit was filed by Gregory Hoffert of California and Prashant Sharan of Washington, who are seeking damages and restitution for customers who purchased Nintendo products between February 2025 and February 2026.
Other Major Brands Face Similar Claims
CNET reports that Lululemon Athletica and EssilorLuxottica, the parent company of Ray-Ban, are also reportedly facing similar legal pressure over tariff refund-related disputes.
Meanwhile, logistics firms such as FedEx, DHL, and UPS have already pledged to return refunded tariff payments to customers, increasing scrutiny on retailers and manufacturers regarding how they handle potential reimbursements.
Originally published on Tech Times
