A federal appeals court has dismissed allegations that Amazon knowingly assisted overseas fur manufacturers in avoiding import duties and fees through its online marketplace.
The 2nd U.S. Circuit Court of Appeals determined on Wednesday that there was insufficient evidence showing Amazon was aware that international manufacturers were deliberately understating shipment values to pay reduced tariffs, or that they were bypassing U.S. Fish and Wildlife Service inspection requirements by omitting necessary documentation and using ports not monitored by the agency.
The lawsuit was brought by Mike Henig, who operates Henig Furs from Montgomery, Alabama. Henig alleged that Amazon should have recognized that overseas manufacturers were offering products at unusually low prices by illegally avoiding import duties and fees from 2007 through 2024, violating the False Claims Act by depriving the federal government of revenue.
However, the appeals court based in New York determined there could be legitimate reasons for the reduced pricing, including operational efficiencies or reduced labor expenses.
Circuit Judge Jose Cabranes, writing for the unanimous three-member panel, stated that “Below-market prices alone are therefore insufficient in this case to show that Amazon was aware of a substantial risk that the foreign manufacturers were submitting false claims.” The ruling confirmed a lower court’s dismissal from January 2025.
The Seattle-based online retailer frequently faces legal challenges from customers and businesses attempting to hold it accountable for actions taken by third-party sellers using its platform.
In 2025, the company’s revenue exceeded that of Walmart, which had long held the position as the world’s top retailer by revenue.
Representatives for Henig did not respond immediately to requests for comment. Amazon and its legal team also did not provide immediate responses to similar inquiries.
This case represents one of several tariff-related legal challenges facing Amazon.
Just last Friday, consumers initiated a proposed class action lawsuit alleging that Amazon failed to reimburse customers for increased costs that stemmed from tariffs later deemed unlawful by the U.S. Supreme Court during President Donald Trump’s administration. Similar legal actions have been filed against numerous other major companies including Costco, FedEx and Nike.
