Amazon has reached a settlement valued at more than one billion dollars to resolve claims that it failed to properly refund customers for their returns. According to court documents, the settlement includes more than six hundred million dollars already distributed or soon to be paid in refunds, plus additional funds that will be paid out to affected consumers.
Under the settlement, Amazon will pay 309.5 million dollars into a non-reversionary common fund, a pool of money set aside for members of the class-action lawsuit. The company has already issued about 570 million dollars in refunds, with about 34 million dollars of refunds remaining.
The e-commerce giant has also agreed to provide over 363 million dollars in non-monetary relief to enhance its return and refund processes. Amazon has denied any wrongdoing.
The lawsuit, filed in 2023, alleged that Amazon caused substantial unjustified monetary losses for consumers who returned an item but were still charged for it.
In a statement, Amazon said that following an internal review in 2025, it identified a small subset of returns where refunds were issued without the payment completing, or where it could not verify the correct item had been sent back, so no refund was issued. The company stated it started issuing refunds in 2025 for these returns and is providing additional compensation and refunds to eligible customers per the settlement agreement.
Amazon agreed to pay 2.5 billion dollars last year to settle a separate lawsuit from the FTC that accused the company of tricking users into subscribing to Prime and making it difficult to cancel. Amazon is currently accepting claims from impacted customers in that matter.