Amazon’s ‘free, no hassle returns’ issue results in over $1 billion settlement

Initially filed in 2023, the class action lawsuit claims that while Amazon advertises “free, no hassle returns,” it often “fails to issue refunds or re-charges customers who have returned items.” It also alleges that Amazon knows customers aren’t aware of the return issues, leading to “substantial unjustified monetary losses by consumers.” Amazon began issuing refunds to customers who claimed they never got a refund for returned items last year.

Amazon has also agreed to commit $363 million toward improving its return and refund practices, but it denied any wrongdoing. “The monetary relief from the settlement will likely represent a full recovery for every class member — plus interest,” lawyers for the class write in the settlement. It’s still awaiting approval by US District Court Judge Jamal Whitehead.