NEW YORK, NY — A new class action lawsuit says Costco shoppers were charged more than they should have been because the warehouse retailer allegedly spread the cost of tariffs across its prices. The case claims those tariffs were imposed under the International Emergency Economic Powers Act during the Trump administration and later invalidated by the U.S. Supreme Court.
According to the complaint, Costco has not offered refunds to customers even though the legal basis for the tariffs has changed. The lawsuit argues that the company collected money tied to tariff costs from consumers and now stands to benefit again if it receives refunds from the federal government for those same charges.
The case was filed Nov. 6 in federal court in New York by plaintiff Elizabeth Howell.
Plaintiff says Costco spread tariff costs beyond imported goods
Howell alleges Costco acted as the importer of record and passed the economic burden of the tariffs onto customers through higher prices. Her complaint says the company did not limit the increases to merchandise that was directly affected by the tariffs.
Instead, she claims Costco raised prices on both imported products and goods made in the United States that were not themselves subject to the tariff program. In her view, that meant shoppers paid more even when the products they bought were not covered by the disputed duties.
The lawsuit says that approach allowed Costco to collect hundreds of millions of dollars in unlawful tariff-related revenue from consumers.
Supreme Court ruling opened the door to refund claims
The complaint says the Supreme Court struck down the IEEPA tariffs earlier this year, creating a path for importers to seek refunds from the federal government. Howell argues Costco has not passed any of those benefits back to customers who paid the higher prices in the first place.
She also alleges the retailer has given no indication that it intends to reimburse shoppers. The lawsuit says that leaves Costco in position to receive a windfall: money recovered from the government after previously shifting tariff costs to consumers.
That alleged double recovery is central to the case. Howell contends the company should not keep money tied to tariffs that were ultimately found unlawful while leaving shoppers without repayment.
Proposed class covers shoppers who bought tariff-affected goods from February 2025 to February 2026
The proposed class action seeks to cover people across the United States who bought Costco goods during the class period from February 2025 through February 2026. The complaint says the class would include customers who purchased products subject to the tariffs, as well as items priced higher because of the tariff increases.
Howell is asking the court to certify the class and order Costco to return the money she says was collected from consumers. She is also seeking damages, attorneys’ fees, costs and a jury trial.
The lawsuit alleges unjust enrichment and violations of New York consumer protection law. Those claims are aimed at forcing the retailer to give back the tariff-related amounts it allegedly retained.
Case filed in Eastern District of New York by Napoli Shkolnik lawyers
The lawsuit is titled Howell v. Costco Wholesale Corp. and was filed as Case No. 1:26-cv-07168 in the U.S. District Court for the Eastern District of New York. Howell is represented by Hunter J. Shkolnik of Napoli Shkolnik NSPR Law Services LLC and Shayna E. Sacks of Napoli Shkolnik PLLC.
The filing adds Costco to a growing set of tariff-related consumer cases. A separate lawsuit against Apple has also accused the company of raising prices across its product line, including on goods made in the United States that were not subject to tariffs.
For now, the Costco case is an allegation, not a finding of liability. The company will have an opportunity to respond in court as the case moves forward.
What the lawsuit could mean for Costco shoppers nationwide
If the court allows the case to proceed as a class action, Costco customers who bought qualifying items during the proposed period could become part of the case without filing individual lawsuits. The complaint argues that a broad group of shoppers was affected because the pricing changes were tied to the tariff program, not just to a single product category.
The case also raises a broader question about who should keep money collected through prices shaped by invalidated tariffs. Howell says the answer should be consumers, not the retailer, especially if Costco receives repayment from the government after already passing those costs along.
Whether the court agrees will depend on the company’s defenses and the evidence presented. For now, the lawsuit focuses on alleged overcharges, refund obligations and whether Costco was unjustly enriched at shoppers’ expense.
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