Amazon.com agreed early this year 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, according to Top Class Actions.com, a website on class action news.
Amazon agreed to pay the money into a settlement fund for millions of consumers who allegedly were denied refunds after attempting to return products.
How to file a claim
Even though the official claim form isn’t live today, you should take these steps now to ensure you aren’t shortchanged again, according to All About Lawyer.com, a legal information website:
- Check your “Returns & Orders”: Go through your Amazon history from 2017 to the present. Look for any items marked as “Return Started” but never “Refund Issued.”
- Save your digital receipts: Search your email for keywords like “UPS Drop-off” or “Kohls Return.” These digital timestamps are the “gold standard” for proving you did your part.
- Watch for official notice: The settlement administrator will send emails to the address associated with your Amazon account. These emails often come from a .com or .org address specifically set up for the case (e.g., www.AmazonReturnSettlement.com).
When to seek legal advice
If you had a high-value return, such as a $2,000 laptop, that was denied and Amazon is refusing to budge, joining the class action settlement might not be enough, All About Lawyer.com advises. If your specific loss is significantly higher than the average consumer, you may want to consult an employment attorney or consumer rights lawyer about “opting out” of the settlement to pursue an individual claim.
Background
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’re processed within its stated timelines and notifying consumers when refunds are approved or denied, according to the settlement.
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 didn’t 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 doesn’t 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 didn’t notice them. Amazon has denied wrongdoing.
A final approval hearing is scheduled for March 16, 2027.
