WASHINGTON, D.C. — A proposed class action lawsuit filed in U.S. District Court in Washington, D.C., alleges that Costco collected tariff costs from consumers through elevated pricing while simultaneously seeking refunds of the same tariff payments from the federal government. The complaint contends that unless the court intervenes, the retailer stands to recover the same tariff payments twice — once from consumers and once from the government.

According to court filings, the lawsuit points to public statements from Costco executives indicating the company raised prices on some goods while tariffs were in effect. On a May 2025 earnings call, Costco said it had raised prices on certain products. Reports indicate price increases appeared on items such as flowers, bedding, and cookware.

On a March 2026 earnings call, the company said it plans to use tariff refunds to lower future prices. However, the complaint alleges Costco has offered no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them.

The proposed class includes all persons in the United States who purchased goods from Costco between Feb. 1, 2025, and Feb. 24, 2026, that were subject to tariffs. According to court filings, Costco reported that about one-third of its sales consist of imported goods that were likely subject to tariffs at some point during that period. The specific affected goods and the amounts customers paid remain unknown and must be proven at trial, the complaint states.

The complaint further alleges that the tariffs at issue were unlawfully imposed under the International Emergency Economic Powers Act. The plaintiffs have asked for punitive damages if Costco's actions are deemed unlawful.

An earlier proposed class action lawsuit over tariff refunds was also filed in Illinois this month. The case is one of at least two federal lawsuits raising similar allegations against the retailer.

A KPMG survey of 300 U.S. businesses similar to Costco examined how companies passed tariff costs on to consumers during the period the IEEPA tariffs were in effect. The survey found that the share of businesses passing on more than half of tariff costs rose to 34 percent, more than doubling from 13 percent in May of the previous year. KPMG also reported that 55 percent of executives surveyed plan to raise prices by up to 15 percent within the next six months.