Amazon has reached a settlement worth more than $1 billion to resolve allegations that it failed to properly refund customers for returned items, according to court documents first reported by Reuters.
As part of the agreement, Amazon will contribute $309.5 million to a non-reversionary settlement fund for affected customers. The company has already issued approximately $570 million in refunds, with around $34 million still pending. In total, more than $600 million has been paid or will soon be paid directly to consumers.
Beyond cash payments, Amazon has also committed to providing over $363 million in non-monetary relief, which includes improvements to its return and refund systems. The company has denied any wrongdoing as part of the settlement.
The class-action lawsuit, filed in 2023, accused Amazon of causing financial harm to customers who returned products but were still charged. Amazon said an internal review in 2025 identified a limited number of cases where refunds were either not completed or could not be processed because the returned item could not be verified.
This settlement follows another major legal resolution for Amazon. In 2025, the company agreed to pay $2.5 billion to settle a lawsuit brought by the Federal Trade Commission, which alleged Amazon misled users into subscribing to Amazon Prime and made cancellations difficult. Claims from affected customers are still being processed.
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