According to reports from WN Hub and GamesIndustry.biz, the company is actively returning these extra funds to buyers rather than absorbing the revenue or leaving fees unaddressed.
The decision arrives as the broader video game and retail industries grapple with the fallout from federal import duties. In February 2025, the Trump administration invoked the 1977 International Emergency Economic Powers Act to levy taxes on foreign trading partners, collecting more than $160 billion before the US Supreme Court struck down the tariffs in February 2026, according to court documents cited by CNET.
Consumer Backlash and Legal Challenges Over Tariffs
While Panic is proactively refunding its buyers, other major corporations face aggressive legal action for retaining similar collections. A proposed class-action lawsuit filed on Tuesday in the US District Court for the Western District of Washington targets Nintendo of America, demanding that the company pass anticipated federal tariff refunds directly to consumers, as reported by CNET.
Plaintiffs Gregory Hoffert of California and Prashant Sharan of Washington state argue in the court filing that Nintendo engaged in unjust enrichment and violated Washington state consumer protection laws. The lawsuit states that Nintendo raised the price of several accessories by $5 to $10 in April 2025 following the tariff implementation, attributing those adjustments to changing market conditions according to Forbes coverage cited by CNET. In August 2025, Nintendo further increased hardware pricing in the US, raising the Switch Lite by $30 and the Switch OLED by $50, according to Video Games Chronicle reporting noted by CNET.
“Unless restrained by this Court, Nintendo stands to recover the same tariff payments twice — once from consumers through higher prices and again from the federal government through tariff refunds, including interest paid by the government on those funds,” the lawsuit states, according to CNET.
Corporate Responses Across the Retail Sector
Companies throughout the import and retail sectors are adopting sharply divergent strategies in response to the voided duties. Shipping giants FedEx, DHL, and UPS have publicly promised to pass refunded tariff money back to their customers, according to CNET.
Conversely, consumer goods manufacturers face intense scrutiny alongside Nintendo. Class-action lawsuits targeting similar retention of duties have also been filed against eyewear maker EssilorLuxottica, producer of Ray-Ban, and apparel brand Lululemon, according to CNET. Nintendo of America representatives did not immediately respond to requests for comment regarding the Washington lawsuit.