$309.5M Amazon Return Settlement Gets Preliminary Approval

Amazon.com's $309.5 million class action settlement for alleged failures to honor its return and refund policies has received preliminary approval in the United States District Court for the Western District of Washington.

The lawsuit alleged that Amazon failed to honor its return and refund policies by not issuing refunds or retrocharging customers who returned items in compliance with Amazon’s policies. Plaintiffs claim that Amazon’s practices resulted in unjustified monetary losses for consumers. Amazon denies any wrongdoing but agreed to settle the case to avoid the expense and uncertainty of continued litigation and to implement changes to its return and refund practices.

The settlement also includes non-monetary relief and prior payments to class members, bringing the total value of the settlement to over $1 billion.

Class members are split into two subclasses: Subclass A and Subclass B:

• Settlement Subclass A
  
  • Eligibility: Individuals whose transactions are included in Amazon’s records as having experienced failed refunds or retrocharges due to computer or payment processing errors, or where the return did not complete Amazon’s review process (such as being lost in transit). These members are identified directly from Amazon’s data and do not need to file a claim.
  • Payout: Members will receive direct payments for the amount of unpaid refunds Amazon’s records indicate they are owed, plus a proportional share of the remaining fund representing interest. No claim form is required for these members, but they may need to select a preferred payment method.
  • Allocation: 92.7% of the net settlement fund
• Settlement Subclass B:
  
  • Eligibility: Individuals whose transactions are not included in Subclass A but who believe they experienced a failed refund or retrocharge. These members must submit a claim and provide information to support their eligibility.
  • Payout: Members must submit a claim and provide information showing they are more likely than not eligible. Approved claims will receive a pro rata share of a portion of the fund based on the value of their unpaid refund and potential interest.
  • Allocation: 7.3% of the net settlement fund

The settlement fund of $309.5 million will cover payments to class members, settlement administration costs, attorneys’ fees and expenses, and service awards to class representatives.

• Settlement administration costs: Up to $5,000,000 (for notice and claims administration)
• Attorneys’ fees: Up to $100,000,000 (subject to court approval) to Zigler Law Group LLC and Quinn Emanuel Urquhart & Sullivan LLP
• Attorneys’ expenses: Up to $1,000,000 (subject to court approval)
• Service awards to class representatives: Up to $7,500 each (for ten representatives, up to $75,000 total)
• Payments to class members: Remainder of the fund

Any funds remaining after all payments are made may be redistributed to class members or donated to a court-approved cy pres recipient.

A website has been set up by the settlement administrator, https://www.returnsettlement.com, and will be updated when claim information becomes available.