Amazon has agreed to a settlement valued at more than $1 billion to resolve claims that it failed to properly refund customers for returned products. Court documents show the agreement includes both cash payments and non-monetary commitments aimed at improving the company’s refund processes.

As part of the settlement, Amazon will pay $309.5 million into a non-reversionary common fund for affected consumers. The company has already issued approximately $570 million in refunds, with an additional $34 million expected to be paid. Reuters first reported details of the settlement.

Beyond direct payments, Amazon has committed more than $363 million in non-monetary relief, including changes designed to strengthen its return and refund systems. Despite the settlement, the company has denied any wrongdoing related to the claims.

The lawsuit, filed in 2023, alleged that some customers were charged for items they had returned, resulting in unjustified financial losses. Amazon said an internal review in 2025 identified a limited number of cases where refunds were either incomplete or could not be verified.

The settlement follows other recent legal challenges faced by Amazon, including a $2.5 billion agreement last year to resolve an FTC lawsuit related to its Prime subscription practices.

Source: Techcrunch