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FedEx, UPS Face Customer Lawsuits for Tariff Refunds After Supreme Court Ruling

Consumers seek repayment from intermediaries despite FedEx's pledge to return any recovered funds.

Overview

  • Customers filed a proposed class action in federal court in Miami seeking refunds from FedEx for duties and related fees tied to tariffs the Supreme Court struck down on Feb. 20.
  • Plaintiff Matthew Reiser alleges he was charged $36 in IEEPA duties and fees on tennis shoes purchased from a German retailer that should not have incurred duty.
  • FedEx has sued the federal government in the U.S. Court of International Trade to recover the contested tariffs and says it will pass any refunds to shippers and consumers, though plaintiffs argue that promise is not legally enforceable.
  • Parallel consumer suits target UPS and EssilorLuxottica, and a freight forwarder has filed multiple actions against FedEx and UPS in South Carolina, Georgia and Tennessee seeking nationwide class status.
  • At least 2,000 companies, including Hasbro, L'Oreal, Dyson, Bausch + Lomb, Costco and J. Crew, have filed refund suits in the Court of International Trade, while the government has yet to set a process or timeline for distributing any money.