Nintendo is fighting a class-action lawsuit that demands the company pass along any refunds received from the U.S. government due to repealed tariffs. The company argues that consumers who purchased its products at inflated prices are not entitled to rebates, as they received "what they bargained and paid for."
This defense was outlined in a filing seeking the dismissal of the lawsuit, according to a report by Game File. Nintendo's filing contends that the payments made by plaintiffs represent the agreed-upon purchase price for goods they received, and that subsequent "intervening legal developments related to tariffs" do not warrant a rebate.
Last year, Nintendo increased prices for the original Switch console, including its OLED and Lite variants, and some accessories in response to U.S.-imposed tariffs. These tariffs affected many imported consumer electronics, leading to price hikes across the market. Earlier this year, the U.S. Supreme Court declared these tariffs illegal, prompting many affected companies to seek refunds from the government. Nintendo itself filed a suit against the U.S. government in March to recover these tariff payments.
The class-action lawsuit was filed in April, aiming to compensate consumers who bought Nintendo products at these elevated prices. Nintendo's argument for dismissal also points out that it did not pass on the full tariff costs to consumers. The company stated in its filing that, unlike many of its market peers, it made "modest and selective price adjustments" and chose to absorb some of the tariff costs for popular products like the Nintendo Switch OLED model.
Furthermore, Nintendo asserted that it would be difficult to calculate the exact tariff amount linked to each specific price increase. The company is advocating for the case to be resolved through private arbitration, despite its public request for dismissal. Similar legal actions have been pursued against other companies, including Sony, regarding PlayStation products purchased during the period of tariff-related price increases. While some companies, like FedEx, have committed to passing tariff refunds to consumers, many others have opted to use such refunds to offset inflation or other costs.