Amazon’s $309.5M return policy settlement

Amazon.com Inc. has agreed to pay $309.5 million to resolve a class action lawsuit alleging that some of its return and refund practices violated Washington consumer protection and other laws. A $309.5 million settlement in the matter known as In re Amazon Return Policy Litigation remains pending final approval, with a hearing set for March 16, 2027.

The case in the U.S. District Court for the Western District of Washington, under case number 2:23-cv-01372-JNW, remains pending while the court considers whether to grant final approval. Settlement data was last refreshed on November 5, 2026, and the process is currently open for claims. Amazon continues to deny any wrongdoing, and the settlement notice states that the agreement is not an expression of the court’s opinion on the merits of the lawsuit.

The settlement divides eligible customers into Subclass A and Subclass B. Subclass A includes people Amazon has already identified as being owed a refund. The majority of the $309.5 million fund will go to Subclass A, who will receive nearly 93% of whatever remains after fees and expenses are deducted. These class members do not need to submit a claim form to receive a settlement payment.

Subclass A members will receive payments automatically, with interest, once the court grants final approval. However, they must choose how to receive their money by visiting the settlement website. They will have 105 days after final approval to select a payment method.

Subclass B consists of customers who may be owed refunds but whom Amazon has not fully documented in its own systems. Amazon estimates that this group is owed about $400 million in refunds but is entitled to just over 7% of the settlement fund, or around $22.6 million before fees. Subclass B members must actively file a claim to receive any payment. The deadline to submit claims for cash is December 1, 2026.

Subclass B claimants can submit claims online at the settlement website or print and mail a PDF form to the settlement administrator. To file online, they must provide the ID and PIN listed in their settlement notice. For each qualifying returned product, they need to give the order number and product description, the date they requested the refund, the amount requested, the reason for refund rejection if known, and proof of tender such as account screenshots, receipts or bank statements.

People who qualify for the settlement are expected to receive an email sent to the account associated with their Amazon login, or to a backup email if necessary. That message should indicate whether they are in Subclass A or Subclass B and outline what steps, if any, they need to take. Those in Subclass B must act before the claim deadline, while those in Subclass A will primarily need to select a payment method after the settlement receives final court approval.

Part of the settlement benefits are automatic, but cash payments for Subclass B require a timely claim. The court will consider any objections and decide whether to grant final approval to the settlement at the March 16, 2027 hearing. As part of the agreement, Amazon has committed to update its return and refund policies going forward, while it maintains that it would have continued to defend the case and opposed class certification absent the settlement.