Amazon Faces Class-Action Lawsuit for Withholding Full Refunds

Amazon is facing a class-action lawsuit for allegedly withholding portions of customer refunds and failing to address the issue when brought to their attention. The lawsuit claims that Amazon is systematically keeping small amounts from refunds, citing a technical glitch in their systems as the reason behind the shortfall.

Specific instances were highlighted in the complaint, where a customer returned items purchased through Amazon Prime but did not receive a full refund. In one case, a customer returned shoes that didn’t fit and only got back about 99% of the purchase price. In another instance, a toilet valve gasket was returned, and the refund was only 88% of the purchase price. Despite contacting Amazon customer service and being promised the missing funds within 24 hours, the customer never received them.

The lawsuit also mentions that other Amazon customers have reported similar experiences on online forums, suggesting that this issue is widespread. It estimates that Amazon may have wrongfully retained over $5 million by withholding small portions of refunds.

The lawsuit seeks class-action certification, arguing that Amazon’s alleged practice could affect a significant number of its customers due to its massive volume of daily orders and high return rates in certain product categories. The plaintiff claims that even minor refund discrepancies could result in millions of dollars being kept by the company.

Amazon has been accused of conversion and unjust enrichment in the lawsuit, with the plaintiff seeking repayment of withheld funds, punitive damages, and an injunction to prevent similar issues in the future. Despite being headquartered in King County, Washington, Amazon has not yet publicly commented on the lawsuit.