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Class action lawsuit filed against Nintendo over potential tariff refund retention

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Gamers Sue Nintendo Over Potential Tariff Refunds

Two gamers have filed a class action lawsuit against Nintendo, alleging the company would be unjustly enriched if it receives tariff refunds from the U.S. government after having already passed those costs to consumers through price increases.

The lawsuit, filed by Gregory Hoffert of California and Prashant Sharan of Washington in the Western District Court of Washington, seeks class action status. It aims to represent all U.S. purchasers of Nintendo goods between February 1, 2025 and February 24, 2026.

The plaintiffs allege that Nintendo would be unjustly enriched if it receives tariff refunds from the U.S. government while having already passed tariff costs to consumers through price increases.

The suit claims this scenario would violate Washington state consumer protection law.

Background: Tariffs, Price Hikes, and a Refund Process

The legal action stems from a series of events beginning in 2025:

  • In March 2026, Nintendo filed a lawsuit against the U.S. government seeking refunds for tariffs imposed the previous year.
  • The Supreme Court struck down those tariffs in February 2026, ruling they were illegally implemented.
  • This week, the U.S. government announced the beginning of the refund process. CNBC reported companies could potentially receive up to $160 billion in total.

Nintendo had previously increased prices on its products, citing the tariffs as a factor. The company raised prices on controllers in April 2025 and on the original Switch console in August 2025.

Company Statements and Wider Context

Statements from Nintendo are central to the plaintiffs' case. In May 2025, Nintendo CEO Shuntaro Furukawa told investors:

"Our basic policy is that for any country or region, if tariffs are imposed, we recognize them as a part of the cost and incorporate them into the price."

Then, in March 2026, when asked if Nintendo planned to pass any tariff refunds on to customers, the company responded: "We can confirm that we filed a request. We have nothing else to share on this topic."

This lawsuit is not an isolated case. Similar class action lawsuits have been filed against other major companies, including FedEx, UPS, and EssilorLuxottica, regarding the same tariff refund issue. Nintendo's own March 2026 lawsuit against the government, along with suits from other companies, was put on hold pending the implementation of the official refund system.

A Skeptical Legal Perspective

Not all legal experts see merit in the gamers' lawsuit. Don McGowan, former chief legal officer for The Pokémon Company, expressed significant doubt.

"I have exceptional difficulty seeing how this is a valid lawsuit. There's nothing distinct between raising prices because of tariffs and raising prices because you just want to make more money."

McGowan added, "There's no legal obligation to keep your margins low. Nintendo didn't receive tariff funds as a fiduciary or with any legal obligation to return them to the consumer."