Amazon’s ‘free, no hassle’ release results in settlement worth more than $1 billion

The class action lawsuit was initially filed in 2023, and claims that while Amazon advertises “free, hassle-free returns,” it often “fails to issue refunds or recharge customers who return items.” It also alleges that Amazon knows customers are unaware of returns issues, resulting in “unjustified significant financial losses by consumers.” Amazon started Issuing refunds For customers who claimed they never received a refund for items returned in the past year.

Amazon also agreed to allocate $363 million to improve returns and refund practices, but denied any wrongdoing. “The cash relief from the settlement will likely represent a full recovery for each class member — plus interest,” class attorneys wrote in the settlement. The project is still awaiting approval from US District Judge Jamal Whitehead.