Overview

• Amazon is refunding customers for unresolved returns, some dating back seven years, following a recent internal audit.
• Refunds are being issued automatically, with no action required from customers, according to an Amazon spokesperson.
• The company recorded a $1.1 billion one-time charge in Q1 2025, partly tied to these historical refund costs and inventory adjustments.
• An ongoing class-action lawsuit alleges Amazon systematically failed to issue or reversed refunds; a judge denied the company’s dismissal request in April 2025.
• Amazon has implemented process improvements to address payment and notification gaps, aiming to prevent similar issues in the future.