Nintendo Faces Class Action Lawsuit Over Tariff Refunds from Gamers

Two Nintendo customers have filed a proposed class action lawsuit against the company, seeking to recover tariff refunds Nintendo is expected to receive from the U.S. government. Gregory Hoffert and Prashant Sharan, residents of California and Washington respectively, filed the complaint in the United States District Court's Western District of Washington on Tuesday, March 12.

The lawsuit demands that Nintendo be compelled to distribute refunds it is likely to receive through the newly opened U.S. Customs and Border Protection (CBP) tariff refund portal. This portal was established after the Supreme Court ruled that tariffs imposed under former President Donald Trump’s International Emergency Economic Powers Act of 1977 were unconstitutional.

In March, Nintendo itself filed a lawsuit against the U.S. government to recover tariff payments. The case was paused as the government worked to implement the refund portal. Many companies, including FedEx and UPS, have stated they will pass refunds back to customers. However, Nintendo has not indicated whether it will do the same.

The plaintiffs argue that Nintendo stands to gain a financial windfall. They claim the company already recouped tariff costs from consumers through higher prices and now seeks to recover those same unlawful payments from the federal government.

"In practical terms, Nintendo stands to receive a windfall: it has already recouped tariff costs from consumers through higher prices, and it now stands in line to recover the same unlawful tariff payments from the federal government," the plaintiffs' lawyers wrote in the complaint.

The lawsuit highlights that Nintendo raised prices on the original Nintendo Switch consoles, certain accessories, and Switch 2 preorder items following the imposition of tariffs. Despite these price increases, the company reported strong financial performance during the tariff period. In May, Nintendo president Shuntaro Furukawa stated that sales forecasts were unaffected by tariffs or production issues, with an expected 15 million units sold during the fiscal year. As of February, Nintendo had sold nearly 18 million Switch 2 consoles.

However, Furukawa also noted that tariffs had a "negative impact of several tens of billions of yen at the profit level." The lawsuit argues that Nintendo did not face significant financial hardship from the tariffs, as the costs were largely passed to consumers. It further states that Nintendo now seeks to recover duties that were economically borne by the plaintiffs and class members.

If certified as a class action, the lawsuit could include hundreds of thousands or even millions of Nintendo customers. The plaintiffs' lawyers suggest the class could be expansive, reflecting the widespread impact of Nintendo’s pricing and tariff recovery strategies.

This case is one of several similar lawsuits filed by customers against companies, including Costco, over the same issue.