"Amazon is moving toward resolving a major class action lawsuit that accused the company of improperly handling customer returns, with a proposed settlement valued at more than $1 billion. The agreement, first reported by Reuters and Bloomberg Law, would mark one of the largest consumer-related settlements involving the e-commerce giant and underscores growing scrutiny of its customer service and subscription practices. The settlement combines direct customer refunds, additional compensation, and operational commitments aimed at reforming how Amazon processes returns and refunds."
"The class action lawsuit was initially filed in 2023 and centers on Amazon's widely advertised promise of "free, no hassle returns." According to the complaint, Amazon frequently failed to issue refunds for items that customers had already returned or later re-charged customers after refunds were processed. The lawsuit alleges that Amazon "fails to issue refunds or re-charges customers who have returned items," despite representing its returns process as simple and consumer-friendly."
Amazon is moving toward resolving a major class action alleging improper handling of customer returns with a proposed settlement valued at more than $1 billion. The settlement would combine roughly $600 million in direct refunds, $309.5 million in supplemental payments, and operational commitments to reform returns and refund processing. The lawsuit, filed in 2023, claims Amazon failed to issue refunds or recharged customers after returns despite advertising "free, no hassle returns." Amazon denies wrongdoing. The settlement could affect millions of shoppers and alter Amazon's returns procedures.
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