Costco class action lawsuit overview:
- Who: A consumer has filed a class action lawsuit against Costco Wholesale Corp.
- Why: The plaintiff claims the retailer overcharged Costco customers to cover the costs of illegal tariffs.
- Where: The Costco class action lawsuit was filed in New York federal court.
A new class action lawsuit accuses Costco of overcharging consumers to cover the costs of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) during the Trump administration, and now refusing to refund the money after the tariffs were struck down by the U.S. Supreme Court.
Plaintiff Elizabeth Howell filed the Costco class action lawsuit on Nov. 6 in New York federal court, alleging violations of state and federal laws.
She claims that Costco, as the importer of record, shifted the economic burden of the tariffs to consumers by raising prices on both imported and U.S.-sourced goods not subject to tariffs.
As a result, Costco collected hundreds of millions of dollars in unlawful tariffs from consumers, the lawsuit alleges.
Lawsuit: Costco refuses to return windfall from unlawful tariffs
The Supreme Court invalidated the IEEPA tariffs earlier this year, creating a pathway for importers to seek refunds. However, Howell says Costco has not returned any portion of the costs it passed on to consumers and she claims it has no intention of doing so.
She alleges the retailer is now poised to receive an inequitable windfall — refunds from the federal government for tariff costs that Costco shifted to consumers.
The class action lawsuit seeks to compel Costco to return funds collected from millions of consumers to cover IEEPA tariffs between February 2025 and February 2026.
The complaint accuses Costco of making no commitment to compensate consumers for those payments, unjustly enriching itself at their expense.
Howell is looking to represent anyone in the United States who purchased goods from Costco during the class period that were subject to IEEPA tariffs or were sold at inflated prices due to the tariffs.
She is suing for unjust enrichment and alleged violations of New York consumer protection laws. She seeks class certification, damages, attorneys’ fees, costs and a jury trial.
In a similar tariff lawsuit, two customers are suing Apple for raising prices across its product line, including on U.S.-sourced goods that were not subject to the tariffs.
Do you believe you paid unlawful tariffs to Costco? Let us know in the comments.
The plaintiff is represented by Hunter J. Shkolnik of Napoli Shkolnik NSPR Law Services LLC and Shayna E. Sacks of Napoli Shkolnik PLLC.
The Costco class action lawsuit is Howell v. Costco Wholesale Corp., Case No. 1:26-cv-07168, in the U.S. District Court for the Eastern District of New York.
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