Playdate maker returns illegal tariff payments to customers

Panic, the company behind the Playdate handheld, is refunding tariffs that were passed on to customers after the Supreme Court ruled the tariffs illegal. The company received refunds from the government and is now distributing them to purchasers. A co-founder said it was the right thing to do.

The 19 percent tariff applied to Playdate hardware imported from overseas, and Panic added it as a separate line item on orders rather than folding it into prices, citing thin profit margins. After the Supreme Court's February ruling declared the tariffs illegal, Panic filed paperwork to reclaim the taxes from the government and then processed refunds for every customer who had paid them.

Panic's approach contrasts with Nintendo, which raised prices on legacy hardware and Switch 2 accessories while citing "market conditions" and tariff uncertainty. Nintendo has received $300 million in tariff refunds but is defending against a class-action lawsuit, arguing customers voluntarily paid their purchase prices. More than 100 companies, including Microsoft and Sony, face similar legal challenges over tariff-related price increases.