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Amazon Proposes $1 Billion-Plus Settlement Over Returns Mishandling, With $309.5 Million Consumer Fund

The proposal requires a Seattle federal judge’s approval before any payments are distributed.

Overview

  • Court filings say Amazon has already issued roughly $570 million in refunds tied to the issue, with about $34 million more still scheduled.
  • The agreement includes a $309.5 million non‑reversionary common fund for class members, though the allocation method and claims process have not been finalized.
  • Amazon also committed over $363 million in process improvements to strengthen return tracking, verification, and customer notifications.
  • The class action, filed in 2023, covers U.S. purchasers dating back to September 2017 who allegedly faced delayed, incorrect, or reversed refunds or were recharged after returning items.
  • Amazon denies wrongdoing, saying a 2025 internal review found a subset of returns with payment-completion or verification failures and that it began issuing refunds last year.