THE WHAT? Shein and Temu have been hit with class-action lawsuits alleging unfair price increases linked to now-invalid US tariffs.

THE DETAILS Filed in Illinois, the lawsuits claim the e-commerce platforms raised prices significantly—by as much as 377% in some cases—to offset tariffs on Chinese imports that were later ruled unlawful. The complaints argue the companies violated consumer protection laws by retaining “windfall profits” instead of passing on potential refunds after the tariffs were struck down. The legal action follows a broader wave of similar cases across retail, while companies argue that issuing refunds for millions of transactions would be operationally complex.

THE WHY? The lawsuits reflect growing scrutiny over how retailers handled tariff-related pricing, particularly as courts overturn previous trade measures and questions arise over whether consumers should be compensated.

Source: Yahoo Finance