Amazon has agreed to a settlement valued at more than $1 billion to resolve a class-action lawsuit claiming it failed to refund customers for returned items. The agreement covers more than $600 million in refunds already distributed or scheduled for payment, plus additional funds for affected consumers, according to court documents.
Amazon will contribute $309.5 million to a non-reversionary common fund for class members. The company has issued approximately $570 million in refunds so far, with about $34 million still pending. Reuters first reported the settlement.
Separately, Amazon committed more than $363 million in non-monetary relief to improve its return and refund processes. The company denied any wrongdoing.
The lawsuit, filed in 2023, alleged Amazon caused consumers “substantial unjustified monetary losses” by charging them for returned items. In a statement to TechCrunch, Amazon explained: “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, so no refund had been issued.” Amazon added: “We started issuing refunds in 2025 for these returns and are providing additional compensation and refunds to eligible customers per the settlement agreement.”
Last year, Amazon settled a separate Federal Trade Commission lawsuit for $2.5 billion over accusations it tricked users into Prime subscriptions and hindered cancellations. The company is now accepting claims from impacted customers in the returns case.
