Amazon has reached a settlement valued at more than $1 billion to resolve a class-action lawsuit alleging failures in its returns and refund process. According to court filings, the agreement includes more than $600 million already issued or scheduled to be paid to customers, along with a $309.5 million payment into a non-reversionary common fund for affected consumers. Amazon has also agreed to provide more than $363 million in non-monetary relief aimed at improving its returns systems and customer experience, while continuing to deny any wrongdoing. The lawsuit, filed in 2023, accused the company of causing financial losses for customers who returned items but did not receive timely or complete refunds.
In a statement, Amazon said it had identified issues during an internal review. “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,” the company said. Amazon added that it began issuing refunds in 2025 and is now providing additional compensation to eligible customers under the settlement. The agreement follows another major legal resolution last year, when Amazon agreed to pay $2.5 billion to settle a Federal Trade Commission case related to Prime subscriptions, with claims from affected users still being processed.
