Amazon has reached a more than $1 billion settlement to resolve claims that it failed to properly refund customers for returns. According to court documents, the settlement includes more than $600 million that has already been distributed or will soon be refunded, plus additional funds to be paid to affected consumers.
Under the agreement, Amazon will pay $309.5 million to the non-regressive pooling fund, a pool of funds set up for class action participants. The company has already refunded about $570 million, with about $34 million remaining. Reuters was first to report on the agreement.
The e-commerce giant also agreed to provide more than $363 million in non-monetary relief to improve its returns and refunds process, according to court documents. Amazon denied any wrongdoing.
The lawsuit, filed in 2023, alleged that Amazon caused “substantial and unfair financial losses” to consumers who returned items but were still charged.
“Through an internal review in 2025, we identified a small subset of returns for which refunds were not processed because we processed refunds without payment being completed or because we could not verify that the correct item was returned to us,” Amazon said in a statement emailed to TechCrunch. “We began issuing refunds for these returns in 2025 and are providing additional compensation and refunds to eligible customers under the settlement agreement.”
Amazon agreed to pay $2.5 billion last year to settle an FTC lawsuit alleging that it tricked users into canceling their Prime subscriptions and made it difficult to do so. Amazon is currently accepting claims from affected customers.
