After the Supreme Court’s decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the plaintiffs’ bar has found a new hook for challenges affecting retailers. The litigation risk is landing not just on importers seeking refunds from the government, but on retailers, marketplaces, and service providers that passed tariff costs through to consumers. Unfortunately, this means that many companies affected by the tariffs in the first instance will now be hit by another target.
On February 20, the Supreme Court held that IEEPA does not authorize the president to impose tariffs, invalidating a broad swath of tariffs imposed in 2025. (Watch a recording of this webinar to learn more.) IEEPA-based tariffs were terminated shortly after the decision, and the ruling created significant refund exposure. Critically, the Court did not address how refunds should be handled. That last point is the opening plaintiffs’ lawyers are using.
Continue Reading IEEPA Tariffs Invalidated: Rising Class Action Risk for Consumer Pricing