Nike sued over alleged failure to refund tariff costs to consumers
Fox Business • • business
Key Points:
- Nike faces a class action lawsuit alleging it failed to refund tariff-related costs passed on to consumers through higher prices, following a Supreme Court ruling limiting presidential authority on tariffs.
- Plaintiffs claim Nike raised prices on footwear by $5 to $10 and apparel by $2 to $10 to offset roughly $1 billion in tariffs paid on imported goods.
- The lawsuit argues Nike could recover tariff payments twice—once from consumers via higher prices and again through potential federal refunds—without legally binding commitments to return overcharges.
- This suit is part of broader litigation against major companies, including Costco, accused of not passing tariff refunds to consumers, as over 2,000 firms seek to reclaim tariffs in U.S. courts.
- The legal action coincides with Nike’s recent announcement of layoffs affecting about 1,400 employees in its Global Operations team, primarily within its technology division.
