Panic, the manufacturer of the Playdate handheld console, has initiated a refund program to return tariff surcharges to customers who purchased the device during a specific period this year. The company previously added a 19% tariff line item to checkout pages for affected orders after finding it financially difficult to continue absorbing the import costs as a small business.
The decision follows a U.S. Supreme Court ruling that determined the tariff regime implemented by the Trump administration was an unlawful use of the International Emergency Economic Powers Act. While the government began issuing refunds to companies that applied for them, Panic is among the few firms choosing to pass those funds back to the original purchasers.
Panic co-founder Cabel Sasser stated that the company felt the money did not belong to them and that returning it was the correct decision. Sasser noted that the process required significant effort, including filing paperwork with the government and building a custom system to process the individual customer refunds, which he described as a more intensive process than what larger corporations have undertaken.
The broader industry response to the Supreme Court ruling has been largely silent, with many major retailers and electronics manufacturers opting to retain their government refunds. Companies such as Nintendo, Sony, and Amazon are currently facing class-action lawsuits from consumers who argue that the tariff costs should be returned. In contrast, some shipping companies like UPS have also moved to refund similar charges to their customers.
Panic stopped applying the tariff surcharge to new Playdate orders after April 21, 2026. The company has since worked to establish the necessary infrastructure to distribute the funds to its customer base, marking a notable departure from the standard industry practice of retaining such government-issued refunds.