The news: Consumers in a proposed class action lawsuit are seeking refunds from Amazon for elevated prices they paid due to tariffs imposed last year under the International Emergency Economic Powers Act (IEEPA), which the US Supreme Court later struck down.

While thousands of companies have filed refund claims following the ruling, Amazon has not, which the lawsuit alleges stems from the retailer’s attempt to curry favor and “further its own business interests.”

The suit seeks to compel Amazon to file a claim and return to consumers any IEEPA-related duties that were passed through as higher prices, along with interest. It also seeks restitution for those overcharges, or a proportional share of any refunds Amazon ultimately recovers, plus legal fees and costs.

The context: Only the importer of record is eligible to file for refunds. That is why Amazon, along with companies like Costco, Nike, and FedEx, has faced similar lawsuits accusing them of failing to pass through tariff refunds to consumers.

Implications for retailers and brands: The lawsuit highlights a growing challenge around price transparency. While consumers often accept price increases when costs rise, they are less willing to accept prices remaining high after those pressures ease. That tension is even more pronounced for marketplaces like Amazon, where pricing is often set by third-party sellers, making accountability less clear.

The energy shock tied to the war in Iran adds another layer of complexity. Any relief companies receive from tariff refunds is likely to be offset by higher fuel and shipping costs, making it harder to separate tariff-driven price increases from broader inflation tied to logistics and supply chains.

In an environment where consumers are already feeling stretched, disputes over who keeps the savings could erode trust between shoppers and retailers. While Amazon’s scale may insulate it from meaningful impact, smaller brands could face greater scrutiny and risk losing customer loyalty.

Go further: Read Live FAQ: How the US Supreme Court's Tariff Reversal Could Shift Retail and Search Growth.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.