Costco revealed this week how much money in government refunds it received after the US Supreme Court ruled against some of President Trump’s tariffs.
But there’s debate – and a lawsuit – about how that money should be used to benefit Costco members, who paid higher prices because of those tariffs.
From groceries to household goods, Costco says it plans to reduce prices on a number of items with the tariff relief money.
Costco member Trinh is OK with the idea. “So for me, I would prefer seeing lower product prices, because it’s just more convenient,” she said. “And we don’t have to wait for (a) refund check.”
But a refund check is exactly what attorney Timothy Emery believes Costco members should receive, after paying higher prices because of tariffs. “I think we can all agree that if a company passes along tariff charges, they should give it back,” said Emery, of Emery Reddy PC.
He represents Costco members in a potential class action lawsuit. In an earnings call Thursday, Costco revealed it received $184 million dollars in tariff refunds from the federal government.
“Well, simply put, without this lawsuit, Costco stands to recover the same tariff payments twice. Once from its loyal customers through higher prices, and again, from our government, and that’s with interest,” Emery said.
He says there’s no guarantee members who paid higher prices would benefit from lower prices on select items, which Costco hasn’t specified. It’s an argument that makes sense to Costco member Wyatt: “Let’s say diapers, for example. I don’t have a child so I wouldn’t be buying diapers, if those got lowered - but maybe not this 20-pound bag of rice – I wouldn’t benefit.”
Costco says its plan for using the refund money “adds value” for members, and the company has asked a judge to dismiss the lawsuit.
Costco member Mitch says he’s OK with receiving a check or paying lower prices, “Either way as long as they return the money they got and make a clear plan and articulate it- it seems fair, right?”
When asked if the company was communicating its plan clearly, he told KIRO 7, “I just learned about it from you, so I’d say no.”
KIRO 7 has reached out to Costco about the lawsuit, but in the past the Issaquah-based company said it does not comment on ongoing litigation.
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