Amazon has reached a major legal settlement tied to its returns and refund practices in the United States, committing more than $1 billion in total relief for affected customers. The agreement resolves a class action lawsuit filed in 2023 that challenged how refunds were handled for returned items.
Amazon will place $309.5 million into a non-reversionary fund under the settlement terms and distribute the money directly to eligible consumers. The company has already issued about $570 million in refunds and expects to pay an additional $34 million as it processes the remaining claims.
What the Settlement Includes
- Cash compensation for customers who were wrongly denied refunds or charged again
- Interest paid on incorrectly withheld amounts
- Coverage for affected purchases dating back to September 2017
In addition to direct payments, Amazon has agreed to more than $363 million in non-monetary relief aimed at improving its internal refund and return verification systems. These changes follow an internal review completed in 2025 that identified cases where refunds were incomplete or improperly confirmed.
Key Settlement Details
| Category | Details |
| Consumer fund | $309.5 million |
| Refunds already issued | About $570 million |
| Expected additional refunds | Around $34 million |
| Non-monetary system upgrades | Over $363 million |
| Eligible period | From September 2017 |
| Court approval | U.S. District Court, Seattle |
Amazon agreed to the settlement without admitting wrongdoing. Class attorneys plan to seek up to $100 million in legal fees, pending court approval.
