Amazon agrees to pay consumers $309M in returns policy settlement
AmazonAmazon(US:AMZN) TechCrunch·2026-01-27 20:38

Core Viewpoint - Amazon has reached a settlement exceeding $1 billion to address claims regarding improper refunds for customer returns [1][2] Group 1: Settlement Details - The settlement includes over $600 million already distributed or soon to be paid in refunds to affected customers [1] - Amazon will contribute $309.5 million to a non-reversionary common fund for members of the class-action lawsuit [2] - The company has issued approximately $570 million in refunds, with about $34 million remaining to be refunded [2] Group 2: Non-Monetary Relief - Amazon has agreed to provide over $363 million in non-monetary relief to improve its return and refund processes [2] Group 3: Background of the Lawsuit - The lawsuit, initiated in 2023, claimed that Amazon caused "substantial unjustified monetary losses" for consumers who returned items but were still charged [3] Group 4: Company Response and Previous Settlements - Following an internal review in 2025, Amazon identified issues with a subset of returns where refunds were not properly issued [4] - Amazon previously settled a lawsuit with the FTC for $2.5 billion over allegations of misleading users regarding Prime subscriptions [4]

Amazon agrees to pay consumers $309M in returns policy settlement - Reportify