Amazon to Pay $309 Million Over ‘No Hassle’ Returns Lawsuit
▼ Summary
– Amazon is proposing a settlement valued at over $1 billion to resolve claims it incorrectly processed returns, including $600 million in refunds.
– The class action lawsuit, filed in 2023, alleges Amazon failed to issue refunds or re-charged customers despite advertising “free, no hassle returns.”
– Amazon has denied any wrongdoing but has also agreed to commit $363 million to improve its return and refund practices.
– The settlement, which is still awaiting court approval, is described by class lawyers as likely representing full recovery plus interest for affected customers.
– Separately, Amazon must pay $2.5 billion to settle an FTC lawsuit accusing it of tricking millions into signing up for Prime.
Amazon has reached a major settlement to resolve a class action lawsuit concerning its return and refund policies. The proposed agreement, valued at over $1 billion, addresses claims that the company failed to properly process returns despite advertising “free, no hassle” procedures. This resolution includes a substantial $600 million designated for customer refunds, alongside an additional $309.5 million in direct payments to consumers impacted by the alleged practices.
The lawsuit, originally filed in 2023, argued that Amazon frequently neglected to issue refunds or incorrectly re-charged customers after items were sent back. It further contended that the company was aware customers remained uninformed about these systemic issues, resulting in what plaintiffs called “substantial unjustified monetary losses.” In response to these allegations, Amazon initiated a process last year to refund individuals who reported never receiving money back for their returns.
As part of the settlement, Amazon has also committed $363 million toward improving its return and refund systems, though it has denied any legal wrongdoing. Attorneys for the plaintiff class have stated that the financial relief from this agreement is expected to provide full recovery, plus interest, for every eligible member. The settlement now awaits final approval from US District Court Judge Jamal Whitehead.
This case is not the only significant legal challenge Amazon is currently navigating. Separately, the company has agreed to pay $2.5 billion to settle a Federal Trade Commission lawsuit alleging it deceived millions of consumers into enrolling for Amazon Prime subscriptions. Customers who believe they were affected by the return practices outlined in the class action can now submit a claim for compensation.
(Source: The Verge)
