Nike has been hit with a second lawsuit over claims the company pocketed tariff money while up charging consumers, just months after being sued for allegedly discriminating against white job applicants.
Tariff Refund Lawsuit
The sportswear giant is now being sued over claims the company should be refunding tariff-related costs it passed on to consumers through higher prices. In February, the US Supreme Court ruled that President Donald Trump did not have the authority to impose certain tariffs under the International Emergency Economic Powers Act, meaning companies like Nike recouped the costs.
Customers are claiming that Nike raised prices of its products by around $2 to $10 to offset the $1 billion the company has claimed was spent in tariffs on imported goods. 'Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them,' the complaint obtained by Fox Business said. 'Unless restrained by this court, Nike stands to recover the same tariff payments twice - once through consumers through higher prices and again from the federal government through tariff refunds,' the filing stated.
The lawsuit, which was filed in Portland, Oregon, joins others, including one against Costco, as big companies are accused of pocketing the tariff refund cash instead of refunding customers, the outlet reported. Around 2,000 companies filed suits to the US Court of International Trade following the court ruling, as they attempt to claw back money spent on imported goods during Trump's tariff war.
Discrimination Allegations
The suit follows a claim in February that the athletic apparel company allegedly discriminated against white job applicants through diversity policies, a press release in February revealed. According to a court filing from the Equal Employment Opportunity Commission, the footwear and apparel giant refused to comply with a sprawling subpoena seeking information such as data on the racial and ethnic makeup of its workforce and a roster of employees chosen for mentoring and development programs.
The commission said it is investigating whether Nike intentionally discriminated against white employees and job applicants, including by disproportionately targeting them for layoffs, and that it needs the information to determine whether Nike violated the law. The probe followed efforts by President Donald Trump and his appointees to eradicate diversity, equity and inclusion policies from the government, private sector and higher education.
Critics of DEI say such programs undermine merit-based decision-making and can amount to reverse discrimination against white people and men specifically. EEOC Chair Andrea Lucas has said many common workplace diversity programs may be unlawful and that her agency would investigate and potentially sue companies for violating laws banning discrimination based on race, sex, religion and other protected traits.
The agency in November accused Northwestern Mutual Life Insurance of failing to comply with a subpoena related to claims that the company discriminated against white men. Northwestern has denied wrongdoing and said the subpoena, which was prompted by a single worker's complaint, is too broad. America First Legal, which was founded by top Trump aide Stephen Miller, filed complaints with the EEOC against a slew of large companies, including Nike, during the administration of Democratic former President Joe Biden.
EEOC investigations are typically prompted by complaints filed by workers, but the Nike probe stems from a relatively rare 'commissioner's charge' initiated by Lucas in May 2024, according to Wednesday's filing in St Louis, Missouri, federal court. Lucas, in a statement on Wednesday, said when there are compelling indications that an employer's DEI policies are unlawful, 'the EEOC will take all necessary steps - including subpoena enforcement actions - to ensure the opportunity to fully and comprehensively investigate.'
In a statement to USA Today, Nike said, at the time, that the lawsuit was 'a surprising and unusual escalation.' The EEOC said that the company may have engaged in 'a pattern or practice of disparate treatment against white employees, applicants and training program participants in hiring, promotion, demotion or separation decisions, including selections for layoffs; internship programs; and mentoring, leadership development and other career development programs.'
Nike added that the company has had 'extensive, good-faith participation in an EEOC inquiry' into its personnel practices, programs and decisions and further said that they were cooperating with the investigation. 'We have shared thousands of pages of information and detailed written responses to the EEOC's inquiry and are in the process of providing additional information,' the company told the outlet at the time. The company's legal team described the subpoena as 'overbroad, unduly burdensome, vague, ambitious and disproportionate to the needs of this investigation.'
EEOC Chair Andrea Lucas said: 'When there are compelling indications, including corporate admissions in extensive public materials, that an employer’s Diversity, Equity, and Inclusion-related programs may violate federal prohibitions against race discrimination or other forms of unlawful discrimination, the EEOC will take all necessary steps - including subpoena enforcement actions - to ensure the opportunity to fully and comprehensively investigate.'
'Title VII’s prohibition of race-based employment discrimination is colorblind and requires the EEOC to protect employees of all races from unlawful employment practices. Thanks to President Trump's commitment to enforcing our nation’s civil rights laws, the EEOC has renewed its focus on evenhanded enforcement of Title VII,' she added. The subpoena was filed in the Eastern District of Missouri. The Daily Mail reached out to Nike for comment.
