Amazon to pay $309.5 million to resolve return policy class action lawsuit
Amazon has agreed to a $309.5 million class action settlement to resolve claims that it failed to properly refund consumers for returned products. The settlement covers customers who purchased and received physical items through Amazon.com between September 5, 2017, and February 12, 2026, and either did not receive a refund, received an incorrect or untimely refund, or were later incorrectly charged for the returned product.
The settlement is divided into two subclasses. Subclass A includes customers whose transactions involved potentially unpaid refunds due to payment processing issues or insufficient confirmation of returned items. Subclass B covers all other eligible customers. Subclass A members will automatically receive payments, while Subclass B members must submit a valid claim form by December 1, 2026.
Amazon has not admitted any wrongdoing but has agreed to implement changes to its return and refund practices. These changes include monitoring return processing times, reprocessing incomplete refunds, notifying customers about refund approvals or denials, and refunding certain returns that have not completed the grading process within 90 days. These measures will remain in place for 12 to 24 months.
The final approval hearing for the settlement is scheduled for March 16, 2027. Class members who belong to both subclasses can receive payments from both funds, which may be combined into a single payment.