August M
Amazon has defeated a whistleblower lawsuit accusing the company of helping foreign fur manufacturers avoid U.S. import tariffs and inspection fees.
A federal appeals court ruled there was not enough evidence to show the online retail giant knowingly assisted sellers in evading customs rules, reports Reuters.
Court sides with Amazon
The ruling came from the 2nd U.S. Circuit Court of Appeals in New York.
Judges rejected claims brought by Mike Henig, owner of Alabama-based Henig Furs, who argued that foreign sellers on Amazon had avoided tariffs by undervaluing imported products between 2007 and 2024.
Henig also alleged some companies bypassed mandatory U.S. Fish and Wildlife Service inspection fees by shipping through ports not overseen by the agency.
The lawsuit accused Amazon of violating the False Claims Act by allegedly allowing fraudulent practices that reduced payments owed to the U.S. government.
No evidence of intent
The appeals court said there was no proof Amazon knowingly ignored or supported tariff evasion by sellers using its platform.
Judge Jose Cabranes wrote that cheaper prices alone were not enough to prove wrongdoing.
According to the ruling, there could have been “innocent explanations” for lower prices, including lower labor costs or economies of scale.
The decision upheld an earlier dismissal issued by a lower court in January 2025.
Amazon faces wider scrutiny
Amazon has repeatedly faced lawsuits attempting to hold the company responsible for the actions of third-party sellers operating on its marketplace.
The company has grown into one of the world’s largest retailers, with 2025 revenue surpassing Walmart for the first time.
Neither Amazon nor attorneys representing Henig immediately commented on the ruling, Reuters reported.
More tariff lawsuits emerging
The case comes as Amazon faces separate legal challenges linked to tariffs introduced during Donald Trump’s presidency.
Last week, consumers filed a proposed class-action lawsuit accusing Amazon of failing to reimburse customers for costs tied to tariffs later deemed unlawful by the U.S. Supreme Court.
Several other major corporations, including Costco, FedEx, and Nike, are reportedly facing similar lawsuits.
The growing legal battles reflect broader disputes over how companies handled tariff-related costs during years of trade tensions.
Sources: Reuters, 2nd U.S. Circuit Court of Appeals
