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12m ago

Amazon Issues Refunds for Unresolved Returns Dating Back to 2018

The company is automatically refunding customers, implementing process improvements, and addressing a $1.1 billion charge as it awaits class-action lawsuit certification.

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Boxes transported on a conveyor belt at the U.S. multinational company Amazon distribution centre in Augny, near Metz, eastern France, on August 29, 2024.
Amazon boxes are seen stacked for delivery in New York City.
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Overview

  • Amazon has begun issuing automatic refunds for a small number of unresolved returns, some dating back as far as 2018, with no action required from customers.
  • An internal review revealed gaps in the company’s return verification and customer notification processes, which have since been updated to prevent future issues.
  • The company recorded a one-time $1.1 billion charge in its first-quarter earnings, covering both historical return refunds and tariff-related inventory costs.
  • A pending class-action lawsuit, filed in 2023, alleges systematic refund failures; it survived a dismissal attempt in April 2025 and is awaiting certification.
  • Customers have reported receiving significant refunds on social media, with some surprised by backdated payments for returns made years ago.