Amazon has agreed to a settlement valued at over $1 billion to resolve a class-action lawsuit filed in 2023. The lawsuit alleged that the company improperly handled customer returns, often failing to issue refunds or re-charging customers for items that had already been sent back, contrary to its "hassle-free returns" promise.
The settlement includes approximately $600 million in refunds already issued and an additional cash payment of over $309 million to affected consumers. Amazon will also invest more than $363 million to improve its return and refund systems, including better monitoring and customer notifications. While Amazon denied wrongdoing, the settlement awaits final court approval and covers U.S. customers who experienced return issues since September 2017.