# Panic refunds tariff fees paid by Playdate owners

The company is returning money collected from customers due to illegal tariffs.

- **Source:** [Engadget - Technology News & Expert Reviews](https://brifing.si/source/16dd2da6-3eea-4d1e-b34f-45e846cdf037)
- **Published:** 2026-08-26
- **Topic:** [Business](https://brifing.si/c/business)
- **Original article:** <https://www.engadget.com/2245122/panic-is-refunding-tariff-fees-paid-by-playdate-owners/>
- **On Brifing:** https://brifing.si/s/14666407-e6e7-41d1-bd9c-644e3942759b

## Panic's tariff refund decision

Panic has started refunding US tariff fees paid by Playdate console buyers, which were imposed by the illegal Trump administration tariffs. The Supreme Court confirmed in February 2026 that the tariff regime was unlawful. Like other companies, Panic applied for a tariff refund but chose to pass the money back to its customers rather than keeping it.

## Email to customers

In an email to customers, Panic stated, 'When you ordered from us, we charged you for the tariff imposed by the US government on each Playdate.' The company treated this fee like any other tax and listed it as a separate line item at checkout. Panic stopped applying the 19% tariff fee to new orders after April 2021.

## Challenges in the refund process

Panic's refunds took until August to process because the company first had to receive its refund from the US government. Then, it needed to build a system to handle refunds for Playdate customers who paid the extra fee. CEO Cabel Sasser said, 'It's just not our money to keep, and it felt really good to give it back.'

## Other companies' stance

Unlike Panic, most companies have chosen not to refund tariff fees to customers. Shipping companies like FedEx, UPS, and DHL are among the few offering refunds. Major corporations like Amazon, Sony, and Nintendo are facing class-action lawsuits for failing to refund customers, alleging they're legally required to do so.

## Trump administration tariffs

The tariffs implemented during Donald Trump's presidency affected most companies selling electronics in the US. While many companies like Nintendo openly opposed these tariffs, most didn't even discuss refunding customers. The Supreme Court's decision confirmed these tariffs were illegal, creating a precedent for refund claims.

## Customer satisfaction and ethics

Panic CEO Cabel Sasser called the refund decision 'an easy way to know you made the right choice.' The company's move sets an example for customer satisfaction and ethical business practices. Unlike many competitors, Panic prioritized long-term trust over short-term profits, demonstrating a commitment to fair consumer treatment.

## Legal proceedings and consequences

Companies like Amazon, Sony, and Nintendo are facing class-action lawsuits for not refunding tariff fees to customers. The lawsuits claim these companies are legally obligated to issue refunds. This legal pressure may force other industry players to reconsider their stance on tariff fee reimbursements.

## Consumer rights and transparency

Panic's refund decision serves as an important example of consumer rights and corporate transparency. Companies' responsibilities toward customers and ethical business practices play a crucial role in building trust. Panic's action could set a precedent for other companies in the industry to follow suit.

## Sources covering this story

- https://www.engadget.com/2245122/panic-is-refunding-tariff-fees-paid-by-playdate-owners/ — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._