Microsoft Defends Tariff Refund Policy Amid Class Action Lawsuit

Microsoft is pushing back against an Xbox buyer's proposed class action lawsuit in Washington federal court. The company argues that the plaintiff should be forced to arbitrate the claim, which alleges that Microsoft pockets tariff refunds meant for customers. In response to the allegations, Microsoft stated that console prices change over time 'for a variety of reasons having nothing to do with tariffs.'

The lawsuit claims that Microsoft is taking advantage of consumers by not passing on tariff refunds to them. However, Microsoft asserts that the company's policy on passing on tariff refunds is governed by its arbitration agreement.