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Amazon has reached a settlement valued at more than $1 billion to resolve claims that it failed to properly refund customers for their returns. The settlement includes more than $600 million already distributed or soon to be paid in refunds, plus additional funds that will be paid out to affected consumers, according to court documents<\/a>.<\/p>\n Under the settlement, Amazon will pay $309.5 million into a non-reversionary common fund, a pool of money set aside for members of the class-action lawsuit. The company has already issued about $570 million in refunds, with about $34 million of refunds remaining. Reuters was first to report <\/a>on the settlement.<\/p>\n The e-commerce giant has also agreed to provide over $363 million in non?monetary relief to enhance its return and refund processes, according to court documents. Amazon has denied any wrongdoing.<\/p>\n The lawsuit, filed in 2023, alleged that Amazon caused \u201csubstantial unjustified monetary losses\u201d for consumers who returned an item but were still charged for it. <\/p>\n \u201cFollowing an internal review in 2025, we identified a small subset of returns where we issued a refund without the payment completing, or where we could not verify that the correct item had been sent back to us, so no refund had been issued,\u201d\u00a0Amazon said in a statement emailed to TechCrunch. \u201cWe started issuing refunds in 2025 for these returns and are providing additional compensation and refunds to eligible customers per the settlement agreement.\u201d<\/p>\n Amazon agreed to pay $2.5 billion<\/a> last year to settle the FTC\u2019s lawsuit that accused the company of tricking users into subscribing to Prime and making it difficult to cancel. Amazon is currently accepting claims<\/a> from impacted customers.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span>
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