Amazon class action settlement overview:
- Who: Amazon.com Inc. has reached a $309.5 million class action settlement with a class of consumers.
- Why: The consumers claim Amazon shortchanged them on refunds for returned items.
- Where: The Amazon class action lawsuit was filed in Washington federal court.
Amazon.com agreed to a $309.5 million class action settlement with a group of consumers to resolve claims the company shortchanged them on refunds for returned items.
A Washington federal judge granted preliminary approval on Aug. 18 to the Amazon returns class action settlement, which also requires the company to improve its return policies to prevent future issues.
Amazon agreed to pay $309.5 million into a non-reversionary settlement fund for millions of consumers who allegedly were denied refunds after attempting to return products.
The settlement comes on top of $570 million Amazon had already returned to consumers and another $34 million it was expected to pay consumers who experienced refund issues when the tentative deal was announced in January.
Amazon also agreed to make changes to its return and refund practices, including regularly monitoring returns to ensure they are processed within its stated timelines and notifying consumers when refunds are approved or denied, according to the settlement.
Amazon settlement covers consumers who returned products since 2017
The settlement class includes anyone who initiated a return or requested a refund for a physical product received from Amazon in the United States between Sept. 5, 2017, and the date the class data is prepared, but did not receive a refund, received an untimely or incorrect refund, or was later incorrectly charged for the returned product.
The Washington federal court emphasized that the preliminary approval order does not determine the validity of the claims or establish any wrongdoing by Amazon or the other released parties.
The court consolidated multiple proposed class actions in 2023 from consumers who alleged Amazon promised “free, no-hassle returns” but routinely failed to issue refunds for returned items.
The consumers alleged that returned items were sometimes misidentified or separated during the refund process and that Amazon failed to correct these errors because many consumers did not notice them. Amazon has denied wrongdoing.
A final approval hearing is scheduled for March 16, 2027.
In another Amazon class action, two consumers are suing the company alleging it “greenwashed” certain seafood products as sustainable and environmentally friendly.
What do you think of the terms of this Amazon returns class action settlement? Let us know in the comments.
The plaintiffs are represented by Nolan K. Anderson, Alicia Cobb, Matthew Hosen, Andrew H. Schapiro, Adam Wolfson, Justin C. Griffin and Alyssa G. Olson of Quinn Emanuel Urquhart & Sullivan LLP and Aaron M. Zigler, Lawrence Ashe and Nidiya S. Gutierrez of Zigler Law Group LLC.
The Amazon class action lawsuit is In re: Amazon Return Policy Litigation, Case No. 2:23-cv-01372, in the U.S. District Court for the Western District of Washington.
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