Amazon agrees to pay consumers $309M in return policy

Amazon has reached a settlement worth more than $1 billion to settle claims that it failed to reimburse customers for their returns. The settlement includes more than $600 million in cash that has already been distributed or will be refunded soon, plus additional cash that will be distributed to affected consumers, according to court documents.

Under the settlement, Amazon will pay $ 309.5 million in a non-conforming fund, the amount of which is paid to the members of the lawsuit. The company has already raised $570 million, with about $34 million remaining. Reuters was the first to declare on termination.

The e-commerce giant has also agreed to provide more than $363 million in non-cash payments to help with refunds and refunds, according to court documents. Amazon has denied any wrongdoing.

The lawsuit, which was filed in 2023, alleged that Amazon incurred “unfair costs” to consumers who returned an item but were charged for it.

“Following an internal review in 2025, we identified a small number of cases where we received refunds without payment, or where we could not confirm that the correct product was returned to us, so no refund was issued,” Amazon said in a statement sent to TechCrunch. “We started making refunds in 2025 for these refunds and are providing compensation and refunds to eligible customers as per the agreement.”

Amazon agreed to pay $2.5 billion last year to settle an FTC lawsuit that accused the company of tricking users into signing up for Prime and making it difficult to cancel. Amazon right now to accept the claim from concerned customers.