Amazon has won an appeal against a whistleblower claim alleging it helped foreign fur manufacturers evade US tariffs and inspection fees on products sold through its marketplace.

The Second US Circuit Court of Appeals rejected the lawsuit on Wednesday, finding there was no proof that Amazon knew, or deliberately ignored, that overseas manufacturers were allegedly paying artificially low tariffs by understating the value of their shipments.

The case was brought by Mike Henig, owner of Alabama-based Henig Furs, who claimed Amazon should have realised foreign sellers were able to offer below-market prices by avoiding import tariffs and US Fish and Wildlife Service inspection fees between 2007 and 2024.

Henig alleged the ecommerce giant had violated the False Claims Act by enabling manufacturers to shortchange the federal government.

However, the New York-based appeals court said lower prices alone were not enough to show Amazon was aware of a substantial risk that false claims were being submitted.

Circuit Judge Jose Cabranes, writing for a unanimous three-judge panel, said there could have been an “innocent explanation” for the pricing, including economies of scale or lower labour costs.

The ruling upheld a lower court’s January 2025 dismissal of the case.

Amazon is frequently targeted by customers and businesses seeking to hold it responsible for the conduct of third-party sellers on its platform.

The retailer, whose 2025 revenue surpassed Walmart’s, has also faced separate litigation connected to tariffs. Last week, consumers filed a proposed class action accusing Amazon of failing to refund tariff-related costs that had allegedly been passed on through higher prices, after the US Supreme Court found the tariffs had been imposed unlawfully by Donald Trump.

Other major companies, including Costco, FedEx and Nike, are facing similar lawsuits.

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