Just months after being sued for allegedly discriminating against white job candidates, Nike is facing a second lawsuit alleging the business pocketed tariff money while overcharging customers.
The massive sportswear brand is currently facing legal action over allegations that it ought to reimburse tariff-related expenses that it passed on to customers in the form of higher pricing.
Companies like Nike recovered the expenses when the US Supreme Court declared in February that President Donald Trump lacked the authority to apply specific tariffs under the International Emergency Economic Powers Act.
Customers are now accusing Nike of raising product prices by $2 to $10 in order to make up for the $1 billion the firm claims it spent on taxes on imports.
According to the complaint that Fox Business was able to get, “Nike has made no legally binding commitment to return tariff-related overcharges to the consumers who actually paid them.”
The lawsuit said, “Nike stands to recover the same tariff payments twice, once through consumers through higher prices and again from the federal government through tariff refunds, unless restrained by this court.”
According to the site, the complaint, which was filed in Portland, Oregon, joins others, including one against Costco, in which large corporations are charged with keeping the tariff refund money for themselves rather than giving customers their money back.
In an effort to recover money spent on imported goods during Trump’s tariff battle, about 2,000 businesses filed lawsuits with the US Court of International Trade after the court’s decision.
Another case against Nike alleges that the firm should not be allowed to keep any tariff refunds from the government after allegedly increasing prices for consumers.
In an effort to recover money spent on imported goods during Trump’s tariff battle, about 2,000 businesses filed lawsuits with the US Court of International Trade after the court’s decision. Elliot Hill, CEO of Nike, is shown.
Consumers are alleging that Nike increased product prices by $2 to $10 in order to make up for the $1 billion the corporation claims was spent on import duties.
The lawsuit comes after a February press release claimed that the athletic gear manufacturer discriminated against white job candidates through diversity practices.
The Equal Employment Opportunity Commission filed a court document claiming that the massive footwear and clothing company disregarded a comprehensive subpoena requesting data on the racial and ethnic composition of its workforce as well as a list of workers selected for development and mentoring initiatives.
In order to ascertain whether Nike broke the law, the commission stated that it is looking into whether the company purposefully discriminated against white workers and job candidates, including by disproportionately targeting them for layoffs.
The investigation came after President Donald Trump and his appointees attempted to remove diversity, equity, and inclusion rules from higher institutions, the corporate sector, and the government.
DEI’s detractors claim that these initiatives can amount to reverse discrimination against white people and men in particular, undermining merit-based decision-making.
Many popular workplace diversity initiatives may be illegal, according to EEOC Chair Andrea Lucas. Her organization would look into and perhaps prosecute businesses for breaking laws against discrimination on the basis of colour, sex, religion, and other protected characteristics.
In November, the agency charged Northwestern Mutual Life Insurance with violating a subpoena pertaining to allegations of discrimination against white men. The subpoena was initiated by a single employee’s allegation, but Northwestern has denied any wrongdoing and claimed it is overly broad.
During Democratic former President Joe Biden’s administration, America First Legal, founded by top Trump aide Stephen Miller, filed charges with the EEOC against numerous major corporations, including Nike.
The lawsuit comes after a February allegation that the sportswear company’s diversity initiatives discriminated against white job candidates.
The Nike investigation is the result of a somewhat uncommon “commissioner’s charge” that Lucas filed in May 2024, according to a filing made on Wednesday in a federal court in St. Louis, Missouri. EEOC investigations are normally sparked by worker complaints.
In a statement released on Wednesday, Lucas stated that “the EEOC will take all necessary steps – including subpoena enforcement actions – to ensure the opportunity to fully and comprehensively investigate” when there are strong indicators that an employer’s DEI policies are illegal.
At the time, Nike described the case as “a surprising and unusual escalation” in a statement to USA Today.
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,” according to the EEOC.
Nike further stated that they were assisting with the probe and that they had “extensive, good-faith participation in an EEOC inquiry” of their personnel policies, initiatives, and decisions.
The corporation told the publication at the time, “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 subpoena was deemed “overbroad, unduly burdensome, vague, ambitious, and disproportionate to the needs of this investigation” by the company’s legal team.
EEOC Chair Andrea Lucas stated: “The EEOC will take all necessary steps, including subpoena enforcement actions, to ensure the opportunity to fully and comprehensively investigate 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 investigation came after President Donald Trump and his appointees attempted to remove diversity, equity, and inclusion rules from higher institutions, the corporate sector, and the government.
The subpoena was deemed “overbroad, unduly burdensome, vague, ambitious, and disproportionate to the needs of this investigation” by the company’s legal team. “Title VII’s prohibition of race-based employment discrimination is colourblind and requires the EEOC to protect employees of all races from unlawful employment practices.”
“The EEOC has renewed its focus on fair enforcement of Title VII because of President Trump’s commitment to upholding our country’s civil rights laws,” she continued.
The Eastern District of Missouri received the subpoena.
Nike was contacted by The Daily Mail for comment.
