There are two constants when it comes to Costco members. First, they know the value of a $5 rotisserie chicken: chicken soup, buffalo chicken dip, throwing scallions and rice directly in the bag; the list really goes on:
The second constant — which probably gave rise to the first — is that Costco members are serious about their money. Despite the President’s repeated claims that the tariffs were amazing for the economy, many a laughing economist has stated otherwise. Even if some companies were willing to absorb parts of the raised costs, the lion’s share of the burden would be lifted by consumers paying higher prices.
Enter the Supreme Court. Even after Donald’s plea to keep things as they are because deciding against tariffs could “literally destroy the United States,” the Court ruled that the tariffs were unconstitutional in a very polemic 6-3. And as companies sue to get their tariff refunds, Costco customers want to be part of the trickle down too — and they’re willing to sue over it. The Independent has coverage:
A Costco customer has filed a class action lawsuit against the wholesale retailer in an attempt to force the company to refund customers who paid higher prices for imported goods as a result of President Donald Trump’s tariffs.
The lawsuit, filed in an Illinois federal court Wednesday, seeks to compel Costco to pass along refunds to customers that it may obtain from the government after the U.S. Supreme Court struck down Trump’s tariffs.
Quick, somebody get that guy a $1.50 hotdog and soda combo on the house!
The first thing to point out is that the class action suit hinges on a big if: Costco has to successfully get the refund from the government before they can give members their share. Some companies may opt to settle on a portion of they money they could be entitled to to get some of the money upfront and avoid drawn out legal battles. Were Costco to settle, the suit may hinge on what amount of the setttlement customers are entitled to. Day in court or not, Costco’s CEO Ron Vachris promised that they will “retur[n] the value to Costco members through lower prices and better values.” What did we learn yesterday, folks? That’s right — no handshake contracts!
This isn’t to throw dirt on Costco’s name in any way, as their recent price cuts suggest Vachris & management are putting our savings where their mouths are, but some legal pressure won’t hurt the chances of seeing some part of the tarriff refund.
Shouldn’t be too much sweat off of Costco’s back anyway — whatever money customers get will be used to buy more rotisserie chickens.
Costco Is Being Sued By A Customer Who Wants Tariff Money Back [Independent]
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s . He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boat builder who is learning to swim and is interested in rhetoric, Spinozists and humor. Getting back in to cycling wouldn’t hurt either. You can reach him by email at [email protected] and by tweet at @WritesForRent.
