Amazon will pay customers $309 million to settle ‘no hassle returns’ lawsuit | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsAIExpandOpenAIAnthropicSee all AIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingPolicyExpandAntitrustPoliticsLawSecuritySee all policyScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Amazon will pay customers $309 million to settle ‘no hassle returns’ lawsuitComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechAmazon will pay customers $309 million to settle ‘no hassle returns’ lawsuitThe settlement includes $600 million in refunds and an additional $309.5 million in payments to impacted customers.The settlement includes $600 million in refunds and an additional $309.5 million in payments to impacted customers.by Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothJan 27, 2026, 2:33 PM UTCLinkShareGiftIllustration by Alex Castro / The VergeEmma RothCloseEmma RothPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.Amazon is resolving claims that it incorrectly processed returns with a proposed settlement valued at over $1 billion, as reported earlier by Reuters and Bloomberg Law. The settlement includes $600 million in refunds, along with an additional $309.5 million in payments to affected customers.Initially filed in 2023, the class action lawsuit claims that while Amazon advertises “free, no hassle returns,” it often “fails to issue refunds or re-charges customers who have returned items.” It also alleges that Amazon knows customers aren’t aware of the return issues, leading to “substantial unjustified monetary losses by consumers.” Last year, Amazon began issuing refunds to customers who didn’t get their money back for returned items.Amazon has also agreed to commit $363 million toward improving its return and refund practices, but it denied any wrongdoing. “The monetary relief from the settlement will likely represent a full recovery for every class member — plus interest,” lawyers for the class write in the settlement. It’s still awaiting approval by US District Court Judge Jamal Whitehead.“Following an internal review in 2025, we identified a small subset of returns where we issued a refund without the payment completing, or where we could not verify that the correct item had been sent back to us, so no refund had been issued,” Amazon spokesperson Maxine Tagay said in an emailed statement to The Verge. “We started issuing refunds in 2025 for these returns and are providing additional compensation and refunds to eligible customers per the settlement agreement.”In addition to this settlement, Amazon is on the hook to pay $2.5 billion to resolve the Federal Trade Commission’s lawsuit that accused the company of tricking millions of people into signing up for Prime. Customers impacted by these alleged practices can file a claim now.Update, January 27th: Added a statement from Amazon.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothAmazonCloseAmazonPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AmazonNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularTikTok USA is brokenPayment processors were against CSAM until Grok started making itEven the big dick subreddit is mad about ICETikTokers are heading to UpScrolled following US takeoverIntel Panther Lake laptop CPU review: call it a comebackThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.Advertiser Content FromThis is the title for the native adMore in NewsPornhub will block new users in the UK next monthDozens of nudify apps found on Google and Apple’s app storesTesla’s robotaxis are cheaper than Waymo, but the wait times are longerPinterest cuts workforce by around 15 percent to focus on AIThe Samsung Trifold will cost nearly three grandGoogle Photos now lets you describe how to transform images into videoPornhub will block new users in the UK next monthEmma Roth30 minutes agoDozens of nudify apps found on Google and Apple’s app storesStevie Bonifield39 minutes agoTesla’s robotaxis are cheaper than Waymo, but the wait times are longerAndrew J. HawkinsTwo hours agoPinterest cuts workforce by around 15 percent to focus on AIJess WeatherbedTwo hours agoThe Samsung Trifold will cost nearly three grandAllison Johnson2:00 PM UTCGoogle Photos now lets you describe how to transform images into videoJess Weatherbed12:44 PM UTCAdvertiser Content FromThis is the title for the native adTop Stories26 minutes agoI grew up with Alex Pretti11:30 AM UTCAll rise for JudgeGPT12:00 PM UTCRoland’s TR-1000 is the ultimate drum machine2:00 PM UTCThe Samsung Trifold will cost nearly three grandTwo hours agoYahoo Scout looks like a more web-friendly take on AI searchJan 26Payment processors were against CSAM until Grok started making itThe VergeThe Verge logo.FacebookThreadsInstagramYoutubeRSSContactTip UsCommunity GuidelinesArchivesAboutEthics StatementHow We Rate and Review ProductsCookie SettingsTerms of UsePrivacy NoticeCookie PolicyLicensing FAQAccessibilityPlatform Status© 2026 Vox Media, LLC. All Rights Reserved

Amazon has reached a settlement of over $1 billion to resolve a class action lawsuit concerning its “no hassle returns” policy. The lawsuit, initiated in 2023, alleged that while Amazon promoted free and hassle-free returns, the company frequently failed to issue refunds or incorrectly charged customers who had returned items. The core claim centered on a discrepancy between Amazon’s advertised return policy and the actual processing of returns, leading to significant financial losses for impacted customers. The settlement agreement includes a $600 million refund payout to affected customers, alongside a further $309.5 million in direct payments to individuals who experienced these issues.

Beyond the immediate refund compensation, Amazon has also committed $363 million to overhaul its return and refund systems and processes, aiming to prevent similar issues from occurring in the future. This investment underlines an acknowledgement of past failings and a strategic effort to enhance operational efficiency and customer satisfaction in its return handling procedures. The company’s internal review, concluded in 2025, revealed a specific subset of returns where processing errors had manifested, resulting in delayed or absent refunds. This prompted the implementation of corrective measures designed to standardize the return and refund workflow. The settlement highlights a crucial area of risk management for Amazon, particularly concerning customer perception and trust, which are critical factors in maintaining its dominant market position. The agreement represents a significant financial outlay, but also a potential safeguard against future legal challenges and reputational damage. It serves as a direct consequence of operational shortcomings within Amazon's expansive logistics and customer service infrastructures.