Amazon agrees to pay consumers $309 million in return policy settlement

Amazon has reached a settlement valued at 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 distributed or will soon be paid out in refunds, as well as additional funds that will be paid to affected consumers, according to Court documents.

Under the settlement, Amazon will pay $309.5 million into a non-recourse common fund, a pool of money allocated to members of the class action. The company has already issued about $570 million in refunds, with about $34 million in refunds remaining. It was Reuters First to report On settlement.

The e-commerce giant also agreed to provide more than $363 million in non-cash assistance to boost returns and refunds, according to court documents. Amazon has denied any wrongdoing.

The lawsuit, filed in 2023, alleged that Amazon caused “unjustified significant financial losses” to consumers who returned a product but were still charged for it.

“After an internal review in 2025, we identified a small subset of returns where we issued a refund without completing payment, or where we were unable to verify that the correct item was returned to us, so no refund was issued,” Amazon said in an emailed statement to TechCrunch. “We have begun issuing refunds in 2025 for these returns and are offering additional compensation and refunds to eligible customers pursuant to the settlement agreement.”

Amazon It agreed to pay $2.5 billion last year to settle a lawsuit brought by the Federal Trade Commission (FTC) that accused the company of tricking users into subscribing to Prime and making it difficult to cancel. Amazon currently Acceptance of claims of affected customers.