In a sweeping resolution to a dispute over returns, Amazon $309 Million Settlement brings closure to a class action alleging customers were denied refunds or charged after sending items back.
Amazon agreed to pay $309 million to resolve claims that shoppers initiated product returns but either never received their money back or were later hit with unexpected charges, according to reporting by Reuters. Plaintiffs’ attorneys told U.S. District Judge Jamal Whitehead that the agreement delivers more than $1 billion in total value when factoring in prior refunds and operational changes.
More Than Cash: Refunds and Reforms
Lawyers for the class said the deal encompasses over $600 million in individual refunds already secured, along with roughly $363 million in non-monetary improvements aimed at tightening Amazon’s return and refund systems. Together with the cash settlement, the total package surpasses the billion-dollar mark, they said.
The agreement is separate from Amazon’s earlier $2.5 billion settlement with the Federal Trade Commission. That case, rooted in a 2023 antitrust lawsuit, accused the company of steering customers into Prime subscriptions and making cancellation difficult.
While both disputes were filed in 2023, the returns lawsuit centered on what plaintiffs described as “substantial unjustified monetary losses” tied to Amazon’s refund process.
