Key facts
- Nintendo argues customers have no legal right to tariff refunds it expects to receive from the government.
- The company stated that buyers received products at the advertised price and have no entitlement to government refunds.
- A class action lawsuit alleges Nintendo profited unfairly by raising prices due to tariffs and then seeking refunds.
- Nintendo raised prices for the Switch console by $30-$50 and accessories by $5-$10.
- The Supreme Court previously ruled that President Trump illegally imposed certain tariffs.
- Nintendo has moved to compel arbitration for one of the plaintiffs in the case.
Nintendo has urged a court to dismiss a class action lawsuit demanding that it pass tariff refunds on to customers. The company argued that consumers who purchased its products, such as the Switch console, have no legal right to refunds that Nintendo is due to receive from the government.
In a motion to dismiss filed recently, Nintendo stated that the plaintiffs are "asking this Court to invent a legal duty out of whole cloth to retroactively re-price completed sales simply because the legal landscape has changed." The company asserted that the plaintiffs "have no legal entitlement to the tariff refunds Nintendo stands to receive."
The lawsuit was filed in April by California resident Gregory Hoffert and Washington resident Prashant Sharan, who seek to represent a class of all US residents who bought Nintendo products between February 2025 and February 2026. They allege unjust enrichment and a violation of the Washington Consumer Protection Act, claiming Nintendo engaged in unfair acts by raising prices due to tariffs, failing to disclose its intent to seek refunds, and retaining those refunds after passing costs to consumers.
Nintendo countered that the doctrine of unjust enrichment does not apply when a party voluntarily pays a purchase price and receives a product. The company stated that plaintiffs "received exactly what they paid for: Nintendo products that Plaintiffs knowingly and voluntarily purchased at the advertised price." Nintendo also noted that retaining money received from the government as tariff refunds is not unjust and does not grant customers any legal entitlement.
Similar lawsuits seeking tariff refunds have been filed against Sony and Microsoft for their gaming consoles. These cases stem from tariffs imposed by President Trump, which the Supreme Court ruled were illegally imposed in February. The government has established a refund process for importers and authorized customs brokers, but not for ordinary consumers who indirectly paid for the tariffs through increased prices.
According to a Foley & Lardner article, plaintiffs' firms have filed over 100 consumer class actions nationwide against businesses that sought refunds for tariffs. These cases span various industries, with the primary legal theory being that companies cannot pass tariff costs to consumers and then retain government refunds for the same tariffs.
Nintendo is also attempting to compel arbitration for one of the plaintiffs, citing evidence that the individual "affirmatively accepted contractual agreements with Nintendo at least twice." The company reserved the right to move to compel arbitration for another plaintiff if discovery reveals his claims are arbitrable.