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Nike faces class action lawsuit accusing it of pocketing tariff refunds while charging consumers more

Nike faces class action lawsuit accusing it of pocketing tariff refunds while charging consumers more

Equal Employment Opportunity Commission Chair Andrew Lucas says a lawsuit alleges ‘race discrimination’ against the entire corporate workforce at Nike on ‘The Bottom Line.’

Nikeis facing a new class action lawsuit accusing the company of failing to refund tariff-related costs it passed on to consumers through higher prices.

In the proposed lawsuit. consumers argue Nike should not be allowed to keep "significant" refunds it may receive after the U.S. Supreme Court ruled in February. the president lacked authority under the International Emergency Economic Powers Act (IEEPA) toimpose certain tariffs.

Nike has said it paid roughly $1 billion in tariffs on imported goods as a result of those actions. The plaintiffs allege the companyraised priceson some footwear by $5 to $10. on some apparel by $2 to $10 to offset those costs.

"Nike has made ​no legally binding commitment to return tariff-related overcharges to ​the consumers who actually paid them," the complaint. filed in federal court in Portland, Oregon, states.

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Nike is facing a class action lawsuit alleging the company failed to refund tariff-related costs passed on to consumers through higher prices.(istock / iStock)

"Unless restrained by this ‌court, ⁠Nike stands to recover the same tariff payments twice — once from consumers through higher prices. again from the federal government through tariff refunds," the complaint continues.

The lawsuit is one of several filed againstmajor companies. including Costco, alleging they failed to pass tariff-related refunds on to consumers.

More than 2,000 companies have filed suits in the U.S. Court of International Trade seeking to recover tariffs paid on imported goods.

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A woman carries a shopping bag while passing in front of a Nike Inc. store in Portland, Ore., April 24, 2013.(Natalie Behring/Bloomberg via Getty Images / Getty Images)

During a March conference call. Nike said its fiscal quarter ending in August 2026 would likely be the final period in which tariffs materially affect gross margins.

The lawsuit comes weeks after Nike announced plans to lay off roughly1,400 employeesfrom its Global Operations team.

In a memo to staff, Chief Operating Officer Venkatesh Alagirisamy said the cuts would primarily affect the company’s technology division across North America, Asia. Europe, representing just under 2% of itsglobal workforce.

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The Nike logo at a store in Manhattann March 30, 2026, in New York City.(Zamek/VIEWpress / Getty Images)

Nike declined to comment to FOX Business.

FOX Business' Eric Revell and Reuters contributed to this report.

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Source: https://www.foxbusiness.com/economy/nike-faces-class-action-lawsuit-accusing-pocketing-tariff-refunds-while-charging-consumers-more

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