"Amazon has reached a settlement valued at more than $1 billion to resolve claims that it failed to properly refund customers for their returns. The settlement includes more than $600 million already distributed or soon to be paid in refunds, plus an additional funds that will be paid out to affected consumers, according to court documents. Under the settlement, Amazon will pay $309.5 million into a non-reversionary common fund, a pool of money set aside for members of the class-action lawsuit."
""Following an internal review in 2025, we identified a small subset of returns where we issued a refund without the payment completing, or where we could not verify that the correct item had been sent back to us, so no refund had been issued," Amazon said in a statement emailed to TechCrunch. "We started issuing refunds in 2025 for these returns and are providing additional compensation and refunds to eligible customers per the settlement agreement.""
Amazon reached a settlement valued at more than $1 billion to resolve claims that it failed to properly refund customers who returned items. The settlement comprises over $600 million already issued or to be paid in refunds, plus additional payouts to affected consumers. Amazon will pay $309.5 million into a non-reversionary common fund and has about $34 million of refunds remaining. The company will also provide over $363 million in non-monetary relief to improve return and refund processes. An internal 2025 review identified a subset of returns without completed payments or verifiable returns; refunds and compensation began in 2025. Amazon denied wrongdoing and is accepting claims.
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