The Costco tariff lawsuit is a proposed class action filed in March 2026 in the U.S. District Court for the Northern District of Illinois, accusing Costco of raising member prices to cover import duties that the Supreme Court later ruled illegal, while also positioning itself to collect government refunds for those same tariffs. The case, Stockov v. Costco Wholesale Corporation, is pending. Costco has moved to dismiss, and as of mid-June 2026 the motion is fully briefed and awaiting a decision from Judge Steven C. Seeger.1CourtListener. Stockov v Costco Wholesale Corporation – Docket
What the Lawsuit Accuses Costco of Doing
Costco member Matthew Stockov filed the complaint on March 11, 2026, represented by attorneys George A. Zelcs and Ryan Z. Cortazar of Korein Tillery.2CourtListener. Stockov v Costco Wholesale Corporation – Parties The theory is what plaintiffs call “double recovery.” According to the complaint, Costco passed most of its tariff costs to shoppers through higher prices on imported electronics, food products, household items, small appliances, and health and hygiene products, and now stands to collect hundreds of millions — potentially over a billion dollars — in government refunds for those same tariffs.3ClassAction.org. Costco Increased Prices for Consumers Under Illegal Tariffs, Class Action Lawsuit Claims
The complaint quotes CEO Ron Vachris saying the company raised some prices because “we felt that was something that the member would be able to absorb.”3ClassAction.org. Costco Increased Prices for Consumers Under Illegal Tariffs, Class Action Lawsuit Claims It also cites a Goldman Sachs report estimating that consumers bore roughly two-thirds of the tariff costs.4BBC News. Costco Faces Class Action Over Tariff Refunds
Claims are brought under the Illinois Consumer Fraud and Deceptive Business Practices Act, the New Jersey Consumer Fraud Act, the Michigan Consumer Protection Act, the Ohio Consumer Sales Practices Act, and a general unjust-enrichment theory. The proposed class covers all U.S. consumers who bought goods subject to IEEPA tariffs from any Costco retail channel between February 1, 2025, and February 24, 2026.3ClassAction.org. Costco Increased Prices for Consumers Under Illegal Tariffs, Class Action Lawsuit Claims The complaint says the class exceeds 100 individuals and the aggregate value tops $5 million.5CFO Dive. Costco Sued by Customer Seeking Tariff Refunds
A separate consumer class action, Gower v. Costco Wholesale Corporation (No. 26-2-08898-5 SEA), was filed on March 16, 2026, in King County Superior Court in Washington, raising similar double-recovery claims.6Ballard Spahr LLP. Tariff Refund Lawsuit Takeaways From the Early Complaints
Why the Tariffs Were Ruled Illegal
On February 20, 2026, the Supreme Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not give the president authority to impose tariffs. The 6–3 decision, written by Chief Justice Roberts and joined by Justices Sotomayor, Kagan, Gorsuch, Barrett, and Jackson, found that the taxing power belongs exclusively to Congress and that the word “regulate” in IEEPA does not encompass the power to tax imports.7Supreme Court of the United States. Learning Resources Inc v Trump, Nos. 24-1287 and 25-250 Justices Thomas, Alito, and Kavanaugh dissented.
The ruling meant that tariffs collected under IEEPA throughout 2025 and into early 2026 had been collected without legal authority. The Court said nothing about how or whether the government should return the money, which opened the door to the refund fights that followed.
Costco’s Own Suit Against the Government
Costco sued the United States, U.S. Customs and Border Protection, and its commissioner on November 28, 2025, in the U.S. Court of International Trade, arguing that the Trump administration exceeded statutory and constitutional limits when it invoked IEEPA and seeking full refunds of all tariffs paid. The case was consolidated with hundreds of other importer challenges under AGS Company Automotive Solutions v. U.S. Customs and Border Protection (No. 25-00255), then stayed pending the Supreme Court’s ruling and, afterward, reassigned to Judge Richard K. Eaton, who kept it stayed.8Civil Rights Litigation Clearinghouse. Costco Wholesale Corporation v United States
Costco won on the legal question but had not actually received any refund money as of its May 2026 court filings.9Los Angeles Times. Companies Quietly Chase Billions in Trump Tariff Refunds as Lawsuits, Politics Mount That fact is now central to Costco’s defense against its members.
How Costco Is Fighting the Consumer Case
On May 18, 2026, Costco filed a motion to dismiss under Rules 12(b)(1) and 12(b)(6).1CourtListener. Stockov v Costco Wholesale Corporation – Docket The company argued three things. The suit is premature because no government refunds have actually been issued to Costco yet. Stockov suffered no harm because he received the products he paid for. And retailers cannot be held liable to consumers simply because costs that once pushed prices higher later disappeared.10The Center Square. Costco Says No Refunds Owed to Customers for Tariff Price Hikes
Judge Seeger set the plaintiff’s opposition due June 16, 2026, and Costco’s reply due June 30.1CourtListener. Stockov v Costco Wholesale Corporation – Docket No hearing on the motion has been scheduled.
What Costco Has Said About Paying Members Back
Much of the fight turns on whether Costco’s public statements about sharing any refund with members count as a real commitment or a vague promise. During a March 5, 2026, earnings call, CEO Ron Vachris said: “Our commitment will be to find the best way to return this value to our members through lower prices and better values.”11Forbes. Costco Says It Will Turn Possible Tariff Refunds Into Lower Prices and Better Values for Customers He also cautioned that it remained “not yet clear what the process will be, what refunds, if any, will be received, and when this will happen.” Executives added that Costco had absorbed a significant portion of tariff costs rather than passing them all along to shoppers.12USA Today. Costco Tariff Refunds
On a May 28 Q3 earnings call, Vachris confirmed the company had begun submitting refund claims to Customs and Border Protection and expected approved refunds on a rolling basis over two to three months. He said Costco planned to “return to our members, in some form, the portion of tariffs that were passed on to them,” while acknowledging the consumer lawsuit was a factor in how the process would unfold.13ROIC.ai. Costco Wholesale Corporation Q3 FY2026 Earnings Call Transcript
The Stockov complaint characterizes the “lower prices and better values” pledge as a vague promise of future benefits to future shoppers, not compensation for the specific people who paid inflated prices during the tariff period.14Sullivan and Cromwell. Tariff Refund Claims Spur Litigation
Can Members Actually Get Money Back?
Nothing has been ordered. The case is at the motion-to-dismiss stage, no class has been certified, and Costco denies liability. Even if the case survives, there are real hurdles ahead.
Under federal trade law, only the “importer of record” has standing to request tariff refunds from CBP, even when the cost was ultimately passed to shoppers. Legal commentators have said these consumer cases face difficulties proving deception, establishing causation given the many factors that influence retail pricing, and demonstrating measurable injury.6Ballard Spahr LLP. Tariff Refund Lawsuit Takeaways From the Early Complaints Costco’s premature-suit argument adds another obstacle: the company says there is no double recovery to disgorge because it hasn’t received any refund yet.
Plaintiffs counter with the CEO’s own statements and earnings-call disclosures as evidence that Costco knowingly raised prices to cover tariff costs and is now claiming refunds for those duties. Whether Judge Seeger treats the “lower prices and better values” pledge as sufficient, or as too vague to protect people who already overpaid, will shape what happens next.
Costco Isn’t the Only Retailer Being Sued
The Stockov complaint is one of an estimated 17 class actions filed against retailers and shipping companies over tariff-related price increases.15Legal Newsline. Costco Says No Refunds Owed to Customers for Tariff Price Hikes The first was Ward v. EssilorLuxottica, filed February 26, 2026, in the Eastern District of New York, alleging the eyewear company raised prices on Ray-Ban sunglasses to offset tariffs and then sought government refunds without passing anything back to consumers.16Arnold and Porter. The Next Wave of Tariff Litigation Similar suits have been filed against Nike, Lululemon, Amazon, FedEx, UPS, and Temu’s parent company Whaleco.9Los Angeles Times. Companies Quietly Chase Billions in Trump Tariff Refunds as Lawsuits, Politics Mount How Judge Seeger rules on Costco’s motion could influence all of them.