Amazon to Pay $309.5M Settlement to End Class Action Lawsuit Over Return Policies [UPDATE]

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Amazon will pay $309.5 million and alter its return policy to resolve a consolidated class action lawsuit that alleged the e-commerce giant improperly denied refunds for returned items.

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According to court documents, the $309.5 million Amazon settlement comes in addition to the roughly $570 million the company has already refunded to customers. The proposed Amazon settlement agreement was submitted to the court on January 23, 2026 and awaits preliminary approval from United States District Judge Jamal N. Whitehead.

If preliminary approved by the court, the $309 million Amazon settlement will cover all United States consumers who, between September 5, 2017 and the date that data for the proposed class is prepared, initiated a return or requested a refund for a physical product purchased from Amazon and did not receive a refund, received an incorrect refund, received a late refund, or were erroneously recharged after receiving their refund.

“The monetary relief from the settlement will likely represent a full recovery for every class member – plus interest,” court documents state.

ClassAction.org will update this page when the official Amazon returns and refunds settlement site is live.

The proposed agreement states that Amazon settlement class members will be categorized into two subclasses. Per settlement documents, members of “Settlement Subclass A” will automatically receive payment without the need to file a claim form, while members of “Settlement Subclass B” will need to file a timely, valid claim form with documented proof of purchase to receive class action settlement benefits.

Per court documents, Settlement Subclass A will include customers who experienced failed refunds or retrocharges, and for whom Amazon’s records reflect that the return did not complete the company’s review process (e.g., the return was lost in transit). Settlement Subclass B will include all other Amazon customers who experienced failed refunds or retrocharges due to mishandling, missorting, and errors in grading that resulted in the customer receiving less than they otherwise would have.

The agreement outlines that the majority of the net settlement fund, after the payment of attorneys’ fees, settlement administration costs and lead plaintiff service awards, will be allocated toward the payment of benefits to consumers in Settlement Subclass A. Specifically, settlement documents say that 92.7 percent of the settlement fund will be put toward Subclass A, and all class members in this group will receive a one-time cash payment to fully compensate for their unpaid transaction amounts plus an amount proportional to the prejudgment interest.

The agreement also outlines that 7.3 percent of the net settlement fund will be allocated to the payment of benefits to those in Settlement Subclass B, where all class members who file a timely, valid claim form will be eligible to receive a one-time cash payment to fully compensate for their unpaid transaction amounts, plus an amount proportional to the prejudgment interest.

It is possible for consumers to be members of Settlement Subclass A and Subclass B, in which case payment from each fund will be combined as one issuance.

Additionally, as part of the settlement, Amazon has agreed to improve its return and refund practices through regular monitoring of returns, technical troubleshooting, automatic refund re-processing after 30 days, and providing more information to consumers who initiate returns as the refund process progresses.

ClassAction.org will update this page with more information on filing a claim form and receiving class action settlement benefits as details are made available by the settlement administrator.

Should the proposed Amazon settlement receive preliminary approval, class members can expect to receive benefits sometime after final approval is granted to the deal, which will take place at a hearing on a to-be-determined date.

The Amazon class action lawsuit alleged that the online retailer “routinely failed” to fulfill its promise of providing customers with a full refund within 30 days of purchase on most items and instead withheld funds from consumers, sometimes recharging them for already-returned goods.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.