WASHINGTON — A class-action lawsuit alleges online retail giant Amazon has been reversing instant refunds after products are properly returned. 

The lawsuit, filed in September 2023 by a group of consumers, accuses Amazon of breaching contract, violating the duty of good faith and fair dealing, and more. 

It surrounds Amazon’s “advance refund” policy, which allows, in some cases, a refund to be issued “as soon as the item is dropped off by you or received by the carrier… in advance of receipt and processing of the item at our Amazon or seller facilities.”

The consumers suing Amazon claimed after their refunds were initially revoked, and when they reached out to customer service — who acknowledged the products had been received — they were given refunds again but no explanation for how the mix-up occurred. 

A customer service chat with an unnamed customer on June 2, 2023 allegedly shows the customer being told their return arrived back to Amazon in February when they got a refund, but the customer was charged back roughly a month later without explanation. 

“I don’t really understand. I sent the item back and you can’t see tracking but you charged me anyway?” The customer asked in attached conversations. “What if I had not noticed my bank account being charged. Would Amazon have just kept my money?”

The lawsuit continues, alleging Amazon programmed its Customer Support chat bot to recognize when a “customer had timely returned an item in original condition but was re-charged for the return item, and to provide that customer with a refund.”

Amazon’s page on refunds and returns does warn there could be charges for the previously refunded amount, or a reversed refund entirely if “item(s) are not in original condition or missing parts/accessories/manuals.” 

They suggest only initiating returns for items “in their original condition” with the correct mailing label, if applicable, and shipped from an eligible participating drop off location like Kohl’s, Staples, UPS or Whole Foods.

Amazon attempted to dismiss the case in April 2025, but the judge denied the request.

“Plaintiffs have adequately alleged that Amazon stole money directly from their bank accounts and continues to possess it unlawfully,” the judge wrote in his denial of motion to dismiss. 

As for where the case stands now? It’s too soon to tell what will happen with the case, or if or when people would be able to submit claims as part of a larger class action lawsuit.