Tariff Double Recovery Consumer Lawsuit Guide 2026: How to Join Class Actions Against Costco, Lululemon, and Other Retailers

On February 20, 2026, the U.S. Supreme Court struck down all tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The ruling invalidated roughly $165 billion in tariffs collected from importers since early 2025. U.S. Customs and Border Protection launched its CAPE refund portal on April 20, 2026, and the first refunds to businesses are expected around May 11, 2026.

But here is the problem: those refunds go to importers and retailers, not to the consumers who actually paid higher prices. Studies show American families paid an average of $1,700 per household in hidden tariff costs, according to Yale Budget Lab estimates cited by state governors and multiple courts. Consumers bore approximately two-thirds of the total tariff burden.

In response, consumers have filed at least two dozen class action lawsuits against major retailers — including Costco, Lululemon, Fabletics, Ray-Ban parent EssilorLuxottica, FedEx, and UPS — alleging "double recovery." The claim: these companies charged consumers higher prices to cover tariff costs, and are now seeking full refunds from the government without returning the money to the people who paid it.

Here is everything you need to know about the lawsuits, whether you qualify, and what your options are.

Understanding "Double Recovery"

The central legal theory in these cases is straightforward:

1. Companies raised prices — Citing tariffs, companies increased prices on imported goods. Many companies explicitly discussed tariff-related price increases on earnings calls and in press releases.
2. Companies are now getting refunds — Through the CAPE portal and CIT lawsuits, importers are recovering every dollar of IEEPA tariffs they paid.
3. Consumers get nothing — Under current federal trade law, importers who receive refunds are not obligated to return money to their customers.

The lawsuits argue that retaining both the higher consumer prices and the government refunds constitutes unjust enrichment — a company should not be allowed to recover tariff costs twice.

Active Consumer Class Action Lawsuits

Costco

Cases filed:

• Stockov v. Costco Wholesale Corp., No. 1:26-cv-02734 (N.D. Ill., filed March 11, 2026)
• Gower v. Costco Wholesale Corp., No. 26-2-08898-5 SEA (Wash. Super. Ct. King Cnty., filed March 16, 2026)

What the lawsuits allege: Costco raised prices on imported goods to cover IEEPA tariff costs. Costco is simultaneously pursuing tariff refunds from the government — potentially "hundreds of millions" of dollars. Costco's CEO stated that tariff refunds would be used to provide "lower prices and better values" to customers in the future, rather than compensating the specific consumers who paid higher prices.

Eligible class (Illinois case): Costco customers in the U.S. who purchased products subject to IEEPA tariffs between February 1, 2025, and February 24, 2026, and who reside in: Illinois, California, Florida, Michigan, Missouri, New Jersey, New York, Ohio, Washington, or Wisconsin.

Legal claims: Unjust enrichment, money had and received, violations of state consumer protection statutes.

Lululemon

Case: Neuman v. Lululemon USA Inc., No. 2:26-cv-11029 (E.D. Mich., filed March 27, 2026)

What the lawsuit alleges: Lululemon passed approximately $240 million in IEEPA tariff costs on to consumers through higher prices while simultaneously seeking a full refund of those tariffs from the government. The company's CEO discussed the impact of tariffs on profitability in public earnings calls, which plaintiffs cite as evidence that price increases were tariff-driven.

Eligible class: Consumers nationwide who purchased Lululemon products between February 1, 2025, and February 24, 2026.

Legal claims: Unjust enrichment, money had and received, state consumer protection violations. Seeks damages, restitution, declaratory and injunctive relief, and attorneys' fees.

Fabletics

Case: Flaherty v. Fabletics, filed in Illinois state court (2026)

What the lawsuit alleges: Fabletics charged consumers for IEEPA tariff costs in its pricing. If Fabletics receives tariff refunds from the government, it will have obtained a "windfall" by recovering costs from both consumers and the government.

Legal claims: Unjust enrichment, state consumer protection violations.

EssilorLuxottica (Ray-Ban)

Case: Ward v. EssilorLuxottica S.A., No. 1:26-cv-01133 (E.D.N.Y., filed February 26, 2026)

What the lawsuit alleges: Ray-Ban prices were stable until March 2025 and then rose sharply following the announcement of U.S. tariffs. The company's CEO indicated in an earnings call that prices were being increased due to tariffs. Unlike FedEx, EssilorLuxottica has not promised to pass any refund on to consumers.

Eligible class: Nationwide class of Ray-Ban customers who purchased products during the tariff period.

FedEx

Cases filed:

• Reiser v. Federal Express Corp., No. 1:26-cv-21328 (S.D. Fla., filed February 27, 2026)
• Anastopoulo v. FedEx Corp., No. 2:26-cv-00753 (D.S.C., filed February 20, 2026)
• Anastopoulo v. FedEx Corp., No. 2:26-cv-02181 (W.D. Tenn., filed February 20, 2026)

What the lawsuits allege: FedEx charged customers tariff-related fees and ancillary brokerage/clearance fees for processing customs entries. The lawsuits seek refunds of these charges regardless of whether FedEx wins its own refund from the government.

Notable: FedEx has announced it will provide refunds to customers who paid tariff fees directly to FedEx. However, one lawsuit argues this pledge "creates no legally enforceable obligation and is expressly contingent on future government and court guidance that may never materialize."

UPS

Case: Anastopoulo v. United Parcel Service Inc., No. 1:26-cv-01005 (N.D. Ga., filed February 20, 2026) and No. 2:26-cv-00754 (D.S.C., filed February 20, 2026)

What the lawsuit alleges: Similar to the FedEx cases — UPS charged customers for tariff-related costs and should not retain those charges if the underlying tariffs were unlawful.

Other Companies That May Face Lawsuits

According to reporting by Popular Information, the following companies have also sued the government for tariff refunds and may face consumer class actions:

• Steve Madden — footwear
• Crocs — footwear
• Deckers (UGG, Hoka) — footwear
• Dollar General — discount retail
• Trek Bicycle — bicycles
• Yeti — outdoor products
• Helly Hansen — outdoor apparel
• Brooks Running — athletic shoes
• Allbirds — footwear
• Dyson — appliances
• Puma — athletic apparel

The law firm Reed Smith reported that the number of cases is expected to "grow considerably" as plaintiff's firms focus on this area. Any company that publicly acknowledged raising prices due to tariffs and is also seeking government refunds is a potential target.

Who Is Eligible to Join

General Eligibility Criteria

Most class actions cover consumers who:

1. Purchased goods or services from the defendant company
2. Between approximately February 1, 2025 and February 24, 2026 (the IEEPA tariff period)
3. The purchased items were subject to IEEPA tariffs (imported goods)
4. Reside in one of the covered states (varies by lawsuit)

State-by-State Coverage

The Costco lawsuits cover residents of: Illinois, California, Florida, Michigan, Missouri, New Jersey, New York, Ohio, Washington, and Wisconsin.

The Lululemon lawsuit seeks a nationwide class.

The FedEx and UPS lawsuits seek nationwide classes.

You Do Not Need Proof of Purchase (Yet)

At this stage, the lawsuits are still in early litigation. Class certification has not been granted in any case. If a settlement is reached, the claims process will typically allow:

• No-proof claims — A flat payment amount (typically small)
• With-proof claims — Full reimbursement based on documented purchases

What You Can Do Right Now

Step 1: Save Your Receipts

• Keep receipts, order confirmations, and credit card statements showing purchases of imported goods from February 2025 through February 2026
• Save emails and online order histories from Costco, Lululemon, Ray-Ban, Fabletics, and other importers
• Screenshot any product pages showing tariff-related surcharges

Step 2: Register for Class Action Notifications

• Top Class Actions (topclassactions.com) — Tracks open settlements
• ClassAction.org — Maintains a database of active cases
• Sign up for email alerts from these services so you are notified when claims windows open

Step 3: Check for Direct Refunds from Shipping Companies

Three shipping companies have committed to passing tariff refunds to consumers:

• DHL — Has announced it is actively refunding customers who paid tariff fees directly to DHL
• FedEx — Has announced a voluntary refund program for customers who paid tariff-related fees
• UPS — Has not formally announced a consumer refund program but is facing litigation

If you paid tariff or brokerage fees directly to any shipping company, contact their customer service to request a refund.

Step 4: Contact Your Elected Officials

Several bills in Congress would provide direct tariff relief to consumers:

• Tariff Refund Act of 2026 (S. 3905) — Would require CBP to refund all IEEPA duties within 180 days, prioritizing small businesses
• Tariff Refunds for Working Families Act (Heinrich) — Would deliver $1,200 per joint filer earning under $180,000, plus $600 per child
• American Worker Rebate Act (Hawley) — Would raise the standard deduction by a "tariff rebate amount"
• American Consumer Tariff Rebate Act of 2026 (Cuellar) — Would provide $231 billion in direct payments to consumers

All are sitting in committee as of May 2026. Contacting your representatives can build momentum for legislative action.

Step 5: Consider Filing Your Own State Consumer Protection Complaint

Even if you do not join a class action, you can:

• File a complaint with your state Attorney General about a company that raised prices due to tariffs and is now keeping the refund
• File a complaint with the FTC at ReportFraud.ftc.gov
• File a complaint with your state's consumer protection agency

These complaints contribute to enforcement pressure and may support future regulatory action.

How These Lawsuits Work: The Legal Process

What Are the Defendants Arguing?

Companies have several defenses:

1. Tariffs were lawful when prices were set — At the time companies raised prices, the IEEPA tariffs had not yet been struck down. Defendants argue that pricing decisions made under then-applicable law cannot be "unjust."

2. Consumers agreed to prices voluntarily — No one was forced to buy at the higher prices; consumers made voluntary purchasing decisions.

3. Difficult to attribute specific price increases to tariffs — Prices reflect many factors beyond tariffs (inflation, supply chain costs, labor). It is "nearly impossible to determine how much individual consumers paid" in tariff costs, according to Terence Lau, dean of Syracuse University College of Law.

4. Mandatory arbitration clauses — Many companies' terms of service require disputes to be resolved through individual arbitration, which can prevent class actions.

5. Not all tariff costs were passed through — Some companies, like Costco, claim they absorbed part of the tariff burden rather than passing it all to consumers.

Counter-Arguments from Plaintiffs

• Public statements prove intent — Earnings calls, press releases, and investor communications where executives explicitly cited tariffs as the reason for price increases undermine the "voluntary pricing" defense
• The legal question is about enrichment, not deception — Even if prices were lawful when set, keeping both consumer-paid tariff costs and government refunds is inequitable
• State consumer protection statutes are broad — Many state laws prohibit "unfair" practices even without proving deception
• The Lululemon case is a warning sign — The company is accused of passing along $240 million in tariff costs to consumers while pursuing reimbursement, which attorneys call "double recovery"

How Much Money Could You Get Back

No settlements have been reached yet, so specific payout amounts are unknown. However:

• The average household paid approximately $1,700 in tariff-related costs
• The total IEEPA tariff revenue was $165 billion
• Individual class action settlements typically pay consumers a percentage of proven damages — anywhere from 5% to 50% depending on the case
• If the Costco cases settle, for example, payments would depend on the size of the settlement fund and the number of claimants

For context on similar cases:

• The FTC's StubHub junk fee settlement ($10 million) is providing partial refunds to eligible ticket buyers
• The Invitation Homes rental fee settlement ($47.2 million) provided automatic refund checks to affected renters
• Class action settlements in consumer cases often result in payments of $10 to several hundred dollars per eligible consumer

Key Takeaways

• At least two dozen class action lawsuits have been filed against major retailers and shippers for "double recovery" of tariff costs
• Costco, Lululemon, Fabletics, EssilorLuxottica (Ray-Ban), FedEx, UPS, and Nintendo are among the companies facing consumer lawsuits
• The lawsuits allege unjust enrichment — companies should not keep both higher consumer prices and government refunds for the same tariff costs
• Eligible consumers include anyone who purchased imported goods from these companies between February 2025 and February 2026
• Save your receipts and register for class action notification services — claims processes are likely 12–24 months away
• DHL and FedEx have announced voluntary consumer refund programs for tariff fees — contact them directly if you paid tariff surcharges
• Legislative solutions are pending in Congress but face uncertain prospects

Last updated May 3, 2026. This guide is for informational purposes only and does not constitute legal advice. Lawsuits are ongoing and outcomes are uncertain. For specific legal questions, consult an attorney.