Nintendo Faces Class Action Lawsuit for Allegedly Not Passing on Large Tax Refunds to Consumers
Two US consumers have filed a class action lawsuit against Nintendo, alleging the gaming giant may have received substantial import tax refunds from the US government but failed to pass the benefits on to consumers. The plaintiffs argue Nintendo should transfer the refunds to users who purchased the affected products.
The plaintiffs in this case are Gregory Hoffert of California and Prashant Sharan of Washington, who filed a lawsuit in the US District Court for the Western District of Washington – a jurisdiction that includes the headquarters of Nintendo of America.
The lawsuit points out that Nintendo previously raised the prices of products such as Switch2 accessories due to prior trade policy adjustments, so if Nintendo subsequently receives import refunds, it would constitute unjust enrichment. The plaintiffs hope to initiate a class action lawsuit on behalf of all consumers in the US who purchased affected Nintendo products, especially those who purchased relevant goods between February 1, 2025, and February 24, 2026.
Similar lawsuits have previously been filed against companies such as FedEx and UPS, with the core demand being that companies return import refunds to affected consumers.
Affected by trade policies, Nintendo previously delayed the pre-order window for the Switch2 in the US by several weeks and offset costs by raising prices for the Switch2 Pro controller and other accessories. The Switch2 console is currently priced at $449.
In addition, the ongoing DRAM shortage crisis has also led to soaring costs for key components. Sony and Microsoft have successively raised console prices. Although Nintendo President Shuntaro Furukawa stated that the company is closely monitoring the impact of the memory crisis, he has not ruled out the possibility of further price increases for the Switch2 in the future.
It is worth noting that Nintendo previously filed a lawsuit against the US government requesting import refunds. The lawsuit has been temporarily suspended with the establishment of a corporate tax refund reporting system by the US government.