Amazon will pay customers $309 million to settle ‘no hassle returns’ lawsuit

Jan 27, 2026 09:33 PM - 4 months ago 122500

Emma Roth

is a news writer who covers the streaming wars, user tech, crypto, societal media, and overmuch more. Previously, she was a writer and editor astatine MUO.

Amazon is resolving claims that it incorrectly processed returns pinch a projected colony weighted astatine complete $1 billion, as reported earlier by Reuters and Bloomberg Law. The settlement includes $600 cardinal successful refunds, on pinch an further $309.5 cardinal successful payments to affected customers.

Initially revenge successful 2023, the people action suit claims that while Amazon advertises “free, nary hassle returns,” it often “fails to rumor refunds aliases re-charges customers who person returned items.” It besides alleges that Amazon knows customers aren’t alert of the return issues, starring to “substantial unjustified monetary losses by consumers.” Amazon began issuing refunds to customers who claimed they ne'er sewage a refund for returned items past year.

Amazon has besides agreed to perpetrate $363 cardinal toward improving its return and refund practices, but it denied immoderate wrongdoing. “The monetary alleviation from the colony will apt correspond a afloat betterment for each people personnel — positive interest,” lawyers for the people constitute successful the settlement. It’s still awaiting support by US District Court Judge Jamal Whitehead.

In summation to this settlement, Amazon is connected the hook to pay $2.5 cardinal to resoluteness the Federal Trade Commission’s suit that accused the institution of tricking millions of group into signing up for Prime. Customers impacted by these alleged practices can record a declare now.

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