Hartford Business Journal

18 HARTFORDBUSINESS.COM | SEPTEMBER 7, 2026 the company reported. "We will use tariff refunds to accel- erate growth investments," CEO Chris Nelson said during the call. Chief Financial Officer Patrick Hallinan said the company doesn't have immediate plans to lower prices. "We haven't changed list prices," Hallinan said during the July investor call. "We don't have an intention to do that on the downside. All we've been doing is dialing in promotional activity as we've learned more about elasticity in this post-tariff, high-inflation environment." Hallinan also warned that inflationary pressures could lead the company to raise prices again by 2027. Pricing freedom At least one company facing such a lawsuit has begun challenging the consumers' legal theory. Warehouse club retailer Costco asked a federal judge in May to dismiss a proposed class-action lawsuit filed against it in Illinois, according to Reuters. The company argued that the customer voluntarily purchased products at accurately posted prices and received what he paid for. Costco also argued that a retailer is not liable simply because costs that contributed to a price increase later declined. Ross Hofherr, co-leader of the international trade practice at law firm Harris Beach Murtha, said that, in hindsight, companies such as Stanley that tried to be transparent about their pricing decisions may have been better off providing less information. "As soon as you tie a price increase and a specific dollar amount to a specific event, then you have a bunch of consumers who feel as though they were wronged," he said. Hofherr said he expects companies to argue that incorporating tariffs into product prices is no different from passing along increases in raw-mate- rial costs or other expenses. "They don't have an obligation to be selling to consumers at the lowest possible price. They can set the prices wherever they want," he said. Companies may also argue that consumers were not obligated to buy products at the higher prices and could have walked away from the purchases. Hofherr said that distinction could put lawsuits involving business-to-business transactions on stronger legal footing, particularly when a tariff surcharge was added to an existing contract. Harris Beach Murtha is advising companies on both sides of those disputes, which Hofherr said require close scrutiny of individual contracts. "It's created a pretty big mess. There's going to be a lot of litigation coming from this," he said. Beyond the legal questions, the consumer cases pose an adminis- trative challenge: determining how to reimburse every customer who bought a product, such as a drill bit, and may have paid only a few cents more because of the tariffs. Attorneys for the plaintiffs said they hope companies will recognize the potential reputational risks and voluntarily establish programs to reimburse customers. Hofherr agreed that companies such as Stanley Black & Decker may want to consider ways to resolve the issue, even if that means offering discounts rather than direct refunds. "There's definitely a way that they can turn that into a positive and into a promotional campaign," he said. A lawsuit alleges Stanley Black & Decker raised prices on DeWalt products to offset tariffs and then retained the federal refunds it received. Contributed Photo Ross Hofherr Payback Battle Continued from page 17 FARMINGTON GARDENS WEDNESDAY SEPTEMBER 30, 2026 5:00 - 8:00 PM PRESENTED BY BE PART OF THE CELEBRATION! Join Connecticut's business community as we honor the companies and leaders making a difference, driving innovation, and raising the bar for excellence across our state. Get your tickets today! SCAN FOR TICKETS OR VISIT HARTFORDBUSINESS.COM/HBJ-EVENTS TICKETS AVAILABLE! HARTFORD BUSINESS C O N N E C T I C U T ' S B U S I N E S S N E W S Share your company's announcements with Connecticut's business community. SUBMIT YOUR BUSINESS ANNOUNCEMENT

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