Amazon has reached a settlement worth more than $1 billion to resolve claims that it failed to properly refund customers for their returns. The settlement includes more than $600 million that has already been paid or will soon be paid in refunds, plus an additional amount that will be paid out to affected consumers, according to court documents.
Under the settlement, Amazon will pay $309.5 million into a non-returnable mutual fund, a pool of money set aside for members of the class action lawsuit. The company has already issued approximately $570 million in refunds, with approximately $34 million in refunds remaining. Reuters was report first on the settlement.
According to court documents, the e-commerce giant has also agreed to provide more than $363 million in non-monetary support to improve its returns and refund processes. Amazon has denied all allegations.
The lawsuit, filed in 2023, alleged that Amazon caused “substantial unjustified monetary losses” to consumers who returned an item but were still charged for it.
“Following an internal review in 2025, we identified a small portion of returns where we issued a refund without payment being completed, or where we were unable to verify that the correct item was returned to us, so a refund was not issued,” Amazon said in an emailed statement to TechCrunch. “We began refunding these returns in 2025 and are providing additional compensation and refunds to eligible customers under the settlement agreement.”
Amazon agreed to pay $2.5 billion last year to settle the FTC’s lawsuit accusing the company of tricking users into subscribing to Prime and making it difficult to cancel. Amazon is currently accepting claims of affected customers.
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