March 24, 2026
Competitors Breaking Tariff Rules? Enter the False Claims Act
ABA Business Law Today
Nelson Mullins partner Jay Rogers and associate William Reinert wrote an article for ABA Business Law Today detailing how businesses can ensure that their peers are abiding by tariff rules.
"...whether one’s competitors pay their fair share of tariffs becomes a significant—if not existential—issue for many businesses. After all, if a business is playing by the new tariff rules and their competitors are not, those competitors gain a critical pricing advantage that can cause the business to lose substantial market share and even threaten the company’s financial viability," Rogers and Reinert said.
That's where the False Claims Act and its qui tam provision comes into play, allowing individuals the right to file a claim on behalf of the government, claiming that a company has a "failure to pay duties." These FCA claims are supported by a June 2025 Ninth Circuit decision called Island Industries vs. Sigma Corp.
You may read the full article here.

