Costco Sued by Customer Over Tariff Refund

Costco Wholesale COST 1.12%increase; green up pointing triangle is being sued by a shopper looking to get his tariff costs back. 

A lawsuit filed Wednesday in an Illinois federal court alleges that Costco owes its customers refunds related to tariffs deemed unlawful by the Supreme Court last month. The suit is seeking class-action status on behalf of Costco shoppers nationwide.  

Costco increased product prices to offset the cost of tariffs, but it hasn’t promised shoppers a refund, said the lawsuit filed on behalf of Matthew Stockov, a Costco member who lives in Illinois. Shoppers won’t get a government refund directly, because they aren’t the importer of record, said the lawsuit. “The truly injured parties possess no direct avenue for redress,” alleged the lawsuit, which asks Costco for a refund on price increases related to tariffs, plus interest.

A Costco spokesman said the company had no comment on the lawsuit. “Our commitment will be to find the best way to return this value to our members through lower prices and better values,” if the company receives tariff refunds, said Chief Executive Ron Vachris on an earnings call last week. It has taken a similar approach with past legal winnings, he said.