How to Get Your Cut of Amazon’s New $1 Billion Returns Settlement
If you’ve ever sent a package back to Amazon only to watch your refund end up in a digital black hole, you finally get a backup.
Amazon has agreed to a settlement worth more than $1 billion to settle allegations that it switched customers in return.
While the company denies any wrongdoing, the numbers tell a different story. Between cash payments and credits that have already been issued, we look at the historic payment of anyone who has been “recharged” only to be refunded or simply ignored by customer service bots.
Payments are specifically targeted for the period between September 5, 2017, and the current date. If you’ve been an active consumer during that window, there’s a good chance you owe the check.
Breaking a multi-billion dollar deal
This is not just one pot of money; it is a multi-layered decision. According to court documents filed in Washington federal court, the settlement includes a $309.5 million fund for affected consumers.
In addition, Amazon has already begun coughing up an estimated $570 million in refunds to people who were wrongly charged.
If you add another $363 million in “non-cash assistance” – which is Amazon’s attorney general fixing its broken systems so this doesn’t happen – the total value of the deal rises past the $1 billion mark.
Who is eligible for payment
The legal team representing the consumers divided the world into two main groups. Depending on which group you fall into, you may not have to lift a finger to get paid.
- Subclass A (Default Group): This includes people whose internal Amazon records show that a return was initiated but not completed — for example, a package lost in transit that you were later charged for. If you are in this group, compensation indicates that you should receive your payment automatically without needing to file a claim.
- Subclass B (Claims Group): This is for “mishandled” returns. Maybe you returned a pair of boots but the Amazon warehouse misplaced them or said you returned the wrong item. If you have written evidence of these errors, you will probably need to submit a claim once the official portal goes live.
How to claim your share
Currently, the deal is awaiting federal judge approval. That means you can’t cash a check today, but you should start prepping. We’ve seen similar cases recently where Walmart shoppers could get up to $500 in a separate class action, proving that staying organized pays off.
- View your inbox: For payments of this scale, Amazon is usually required to email all eligible customers to the address associated with their account. Do not delete emails from “Settlement Administrator” or those that refer to “In re: Amazon Return Policy Litigation.”
- Check your Recovery Center history: Check back with your Amazon orders. Check for items that you know you returned but the status still says “Refund Started” or “Refund Issued” followed by the next charge to your credit card. Save those screenshots.
- Do not confuse this with Prime settlement: It’s worth noting that Amazon is also currently paying up to $51 per person in a separate $2.5 billion Federal Trade Commission (FTC) fine for fraudulent Prime subscriptions. That’s a whole different pot of money.
The lawyers involved expect that for many, this compensation will represent a full refund of lost funds, plus interest. In the world of lawless gotcha capitalism, getting your full money back and more for your trouble is a rare victory.
