Amazon proposed a USD 309.5 million settlement for customers affected by alleged refund problems. The case covers US customers who returned physical products through Amazon.com between September 5, 2017, and February 12, 2026. 

The lawsuit centers on missing, delayed, incorrect, or reversed refunds linked to returned products. Amazon denies wrongdoing, while the court has not found any legal violation or misconduct.

The case, In re: Amazon Return Policy Litigation, remains pending in Washington federal court. The proposed Amazon refund settlement would create a non-reversionary fund for eligible class members and related costs. 

The court granted preliminary approval on August 18, 2026, and scheduled final approval for March 16, 2027. The hearing will take place in Seattle at 10 a.m. Pacific Time.

Amazon says an internal review in 2025 found a limited group of unresolved refund cases. Some refunds failed during payment processing, while others involved return-verification issues. 

According to the settlement materials, Amazon began issuing some affected refunds separately during 2025. The company also agreed to make reasonable efforts to pay additional payments outside the settlement fund.

Eligibility depends on several conditions tied to the Amazon return policy. Customers must have purchased a physical product through Amazon.com and initiated a return or refund request. 

Amazon records must show that the returned product reached the United States during the covered period. The refund must have remained unpaid, arrived late or incorrectly, or later faced a charge after payment.

The settlement divides eligible customers into Subclass A and Subclass B. Subclass A includes qualifying customers already present in Amazon records.

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