Amazon wins preliminary approval of a $309.5M settlement with shoppers who returned items and were never refunded for them

by | Aug 27, 2026 | Latest E-commerce News & Updates

Amazon’s $309.5M settlement over refunds it never issued on returned items won preliminary approval from a Washington federal judge on August 18, seven months after the deal was filed. The cash fund is one piece of a package the plaintiffs’ lawyers valued above $1B, alongside roughly $600M in refunds Amazon has paid or still owes and $363M in commitments to fix how it handles returns. Anyone in the US who started a return since September 5, 2017 and got nothing back, got the wrong or a late amount, or was charged again afterward is covered. Amazon denies wrongdoing and says a 2025 internal review turned up a subset of returns where it approved a refund the payment never completed, or where it couldn’t confirm the right item came back. Final approval is set for March 16, 2027.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Amazon

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