In early 2025, the United States imposed large-scale customs duties on electronic imports under the International Emergency Economic Powers Act (IEEPA), a law used to address economic threats. These duties significantly increased the cost of importing goods, including video game consoles. Sony, Microsoft, and Nintendo responded by raising the prices of their consoles, citing increased costs and difficult market conditions. However, they did not explicitly inform consumers that these price hikes were due to the customs duties. In February 2026, the U.S. Supreme Court ruled that the IEEPA did not authorize the customs duties, effectively invalidating them. This decision opened the door for potential refunds totaling between $133 billion and $175 billion, which would be distributed by the U.S. Court of International Trade. Companies like Nintendo, Microsoft, and Sony began receiving these refunds, while consumers who had already paid higher prices for consoles remained unaware of the situation. Some consumers noticed that the companies had increased prices when the duties were in place but did not reduce them when the duties were removed, raising questions about fairness. Consumers in California and Washington, including Gregory Hoffert, Prashant Sharan, Amorey Walker, and Bryce Foster-Quarles, filed lawsuits against Sony and Nintendo, arguing that the companies should return the money they received in refunds to their customers. These lawsuits are based on the legal concept of "unjust enrichment," which suggests that a party cannot benefit from a financial gain that was unfairly taken from another. The plaintiffs claim that the companies passed on the cost of customs duties to consumers through higher prices, and now receiving refunds from the government is an unfair double benefit. Sony and Microsoft have responded by adopting a legal strategy similar to Nintendo's. They argue that consumers who purchased consoles at the announced price received exactly what they paid for, and therefore, no court can force them to return any part of the refund. Additionally, Microsoft is attempting to move the dispute to private arbitration, which could potentially end the class action lawsuits. Meanwhile, a small Portland-based video game company called Panic has taken a different approach. After the Supreme Court ruling, Panic began automatically refunding $12.36 to each customer who had paid a customs surcharge on its Playdate console. The company's CEO, Cabel Sasser, stated that it was the right decision to return the money, even though it required effort. This initiative highlights a contrast between large console manufacturers and smaller companies that have chosen to act transparently with their customers.