Published
July 22, 2026
If you bought an Xbox console during the tariff period, this proposed class action against Microsoft could affect you — though there is no settlement or claim form yet.
Allegations Only · No Settlement Yet
This article describes a class action complaint. The statements below are unproven allegations. Microsoft has not been found liable, there is no certified class, and nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
Microsoft Corporation is facing a proposed class action lawsuit alleging that the company raised the prices of its Xbox consoles to pass tariff costs along to customers — and now stands to collect government refunds of those same tariffs, while the shoppers who allegedly paid the higher prices have no comparable path to get their money back. Microsoft has not been found liable, and the allegations remain unproven.The case is captioned Hastings v. Microsoft Corporation and was originally filed in the Superior Court of the State of Washington for King County before being removed to the U.S. District Court for the Western District of Washington (No. 2:26-cv-02537-MLP). The named plaintiff, a California resident, says he bought an Xbox console from a retailer at a price Microsoft raised during the period tariffs were in effect. According to the complaint, Microsoft acts as the importer of record for the consoles it brings into the United States, paying the tariffs at the border and then setting the retail prices its customers pay. The complaint brings claims for unjust enrichment and restitution, money had and received, and a declaratory judgment. Microsoft has not been found liable, and the claims remain unproven.
Status
Complaint Filed · June 17, 2026
Proposed class action · Hastings v. Microsoft Corporation · removed to W.D. Wash.
Allegation
Xbox prices raised to pass on IEEPA tariffs, while Microsoft stands to collect government refunds of those same tariffs
IEEPA tariffs were struck down; the complaint alleges a potential double recovery
Can I Claim?
No — nothing to claim yet
No settlement announced, no class certified, and no public consumer claim form at this stage
The Tariff "Double Recovery" Problem
The lawsuit fits a wave of consumer cases built on how U.S. tariff law works, alongside similar tariff-refund suits already filed against other importers like Sony, Nintendo, Nike, Amazon, IKEA, and Ralph Lauren. When a tariff is imposed, the importer of record — here, Microsoft, which brings its consoles into the country — pays the duty at the border and typically raises retail prices to recover that cost, so the shopper effectively pays part of the tariff at checkout.When a tariff is later struck down, the refund mechanism gives importers of record — not retail consumers — the direct path to seek reimbursement from the government. The refund flows back to whoever paid the duty at the border, not to the shopper who paid the higher retail price. The complaint argues this lets Microsoft collect higher prices from consumers during the tariff period and then collect a refund afterward, recovering twice for the same economic burden. As the complaint frames it, unless the court steps in, Microsoft 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. It asks the court to require Microsoft to return the tariff costs it allegedly passed on to customers, with interest.
The Xbox Price Increases at the Center of the Case
The complaint alleges that during the period the tariffs were in effect, Microsoft raised prices across its Xbox console line and that media reports at the time tied those increases to tariffs. Microsoft announced U.S. price increases on Xbox hardware in May 2025 — with the Xbox Series S moving to $379.99 and the Xbox Series X to $599.99, and some first-party games rising to as much as $79.99 — followed by a second round of U.S. hardware increases in September 2025. Microsoft publicly cited "market conditions" and "the macroeconomic environment" rather than tariffs by name, but most Xbox hardware is manufactured overseas and was subject to the import tariffs at issue.The theory of the case is not that a price increase is by itself unlawful, but that Microsoft allegedly raised these prices at least in part because of tariff costs, collected the higher prices from consumers, and is now positioned to recoup those same tariffs from the government after they were invalidated — without passing the benefit back to the customers who paid. Whether Microsoft in fact set these prices to recover tariffs, and whether it is entitled to refunds, are questions the court has not decided.
The IEEPA Tariffs and the Supreme Court Ruling
Beginning in roughly February 2025, the federal government imposed tariffs on imports from numerous countries by invoking the International Emergency Economic Powers Act (IEEPA). According to the complaint, the U.S. Supreme Court later held that IEEPA does not authorize the President to impose tariffs and that those duties were unlawful, in Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026). As a result, importers and retailers that had paid the duties became entitled to seek refunds from U.S. Customs and Border Protection (CBP).That refund process is what the lawsuit targets. Importers can apply to recover the duties they paid through CBP's tariff-refund process — but consumers who shouldered the cost through higher prices have no direct government mechanism to get their money back. The complaint alleges Microsoft is positioned to collect a refund attributable to costs its customers actually bore, and that it has not publicly committed to returning anything to those customers.
What the Lawsuit Seeks
The complaint brings claims for unjust enrichment and restitution, money had and received, and declaratory judgment, and asks the court to:• Certify the case as a class action and appoint the named plaintiff's counsel as class counsel.
• Require Microsoft to return to class members the tariff-related price increases it allegedly passed on, through restitution and disgorgement.
• Declare that retaining the tariff surcharges paid by consumers but refunded to Microsoft is unlawful.
• Award restitution, damages, pre-judgment interest, and attorneys' fees and costs.
All of these are requests for relief tied to unproven allegations; Microsoft has not been found to have done anything unlawful, and no money has been awarded.
Is There a Microsoft Tariff Settlement Yet?
No. This is important: Hastings v. Microsoft Corporation is a newly filed lawsuit, not a settlement.That means:
• There is no settlement fund.
• There is no claim form.
• There is no payout, and no deadline to act.
• Consumers do not need to do anything at this stage.
The filing of a complaint is the very beginning of a case, not the end. Microsoft has not been found liable simply because a lawsuit was filed, and the case remains pending unless and until a newer docket entry says otherwise. If the case is ever resolved through a settlement or a class is certified, a formal claims process with its own eligibility rules and deadlines would be announced separately.
Who Could Be Affected?
The complaint proposes a nationwide class of U.S. consumers who bought Microsoft products at prices the company allegedly increased at least in part to pass along IEEPA tariff costs during the period the tariffs were in effect — beginning in roughly February 2025.No class has been certified, and the final class definition, if any, could change. If you bought an Xbox console during that window, it may be worth keeping your receipts and order history handy in case a class is later certified and a claims process opens. There is nothing to file right now.
Beware of Microsoft Tariff Refund Scams
Important: whenever a class action is filed against a household-name brand, scammers send fake "tariff refund" texts, emails, and calls asking shoppers to click a link, confirm bank details, or pay a small "processing fee." There is no Microsoft or Xbox tariff refund claim form right now, and Microsoft has not announced any consumer refund program. A legitimate claims process — if one ever exists — would be run by a court-appointed settlement administrator, would be free to participate in, and would never ask for your banking passwords, gift cards, or up-front fees.What Happens Next?
From here, the case will move through the normal early stages of federal litigation. Microsoft may file a response to the complaint or a motion to dismiss, the parties may exchange information in discovery, and the plaintiff would, at some point, ask the court to certify a class. Any of these steps can take months, and the case could also be amended, narrowed, or resolved along the way.OpenClassActions.com will continue watching the docket for any major updates, including a motion to dismiss, settlement talks, class certification activity, or any future claim form.
Frequently Asked Questions
What does the Microsoft lawsuit allege?
According to the complaint, Microsoft raised the prices of its Xbox consoles to pass IEEPA tariff costs to customers and, as the importer of record, now stands to collect government refunds of those same tariffs after they were struck down, while its customers have no comparable refund process. The allegations are unproven.Is there anything to claim right now?
No. There is no settlement, no fund, and no claim form. Anyone asking you to file a claim or pay a fee for a Microsoft or Xbox tariff refund today is running a scam.Who could be covered?
Generally, U.S. purchasers who bought Microsoft products at allegedly tariff-inflated prices during the period the IEEPA tariffs were in effect — beginning in roughly February 2025. The exact class definition is not final because no class has been certified.Sources
• Class Action Complaint, Hastings v. Microsoft Corporation, No. 2:26-cv-02537-MLP (W.D. Wash.) (originally filed King County Super. Ct., June 17, 2026).• Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026).
• Reuters — Microsoft hikes Xbox prices in the U.S. once again as tariff challenges persist (Sept. 19, 2025).
• Axios — Xbox price increase amid Trump tariffs (May 1, 2025).
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Status
Complaint Filed — Proposed Class Action
Case Title
Hastings v. Microsoft Corporation
Case Number
2:26-cv-02537-MLP (W.D. Wash.)
Court
U.S. District Court, Western District of Washington (removed from King County Superior Court)
Date Filed
June 17, 2026
Claims
Unjust enrichment / restitution; money had and received; declaratory judgment
