economy
January 28, 2026
Amazon will pay customers $309 million to settle ‘no hassle returns’ lawsuit
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TL;DR
- Amazon faces a proposed settlement exceeding $1 billion for alleged incorrect processing of customer returns.
- The settlement includes $600 million in refunds and $309.5 million in payments to affected customers.
- A class action lawsuit claims Amazon failed to issue refunds or re-charged customers for returned items, causing financial losses.
- Amazon will also invest $363 million to enhance its return and refund processes.
- The company denies any wrongdoing but has begun issuing refunds for identified issues.
- The settlement is awaiting approval from US District Court Judge Jamal Whitehead.
- This settlement is separate from a $2.5 billion payment Amazon must make to resolve an FTC lawsuit regarding Prime sign-ups.
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