Shein and Temu face class-action lawsuits demanding they refund customers for price hikes tied to tariffs the Supreme Court struck down

by | Apr 17, 2026 | E-commerce News

Two coordinating class-action complaints filed in Cook County Circuit Court accuse Shein and Temu of violating the Illinois Consumer Fraud Act by raising prices by as much as 377% to offset tariffs on Chinese imports that the Supreme Court later struck down as unlawful, with plaintiffs arguing customers are entitled to the “windfall profits” the platforms pocketed. The lawsuits are part of a broader wave of similar litigation hitting retailers including Costco, Lululemon, and EssilorLuxottica, as courts have ordered Customs and Border Protection to refund $166B in now-invalidated tariff payments and plaintiffs argue that money should flow through to consumers. The cases may be complicated by the fact that the original tariffs were quickly replaced by a 10% global import surcharge, and Treasury Secretary Scott Bessent suggested this week that tariffs could be restored to previous levels under a Section 301 regime by July.

Paul Drecksler is the founder and editor of Shopifreaks E-commerce Newsletter, covering the most important stories in e-commerce.

Never miss important e-commerce news

Our weekly newsletter is read religiously by 20,000+ e-commerce professionals.

Loading...