Amazon faces lawsuit over refund policy many customers didn’t know about

HOUSTON — A new class-action lawsuit claims Amazon has been reversing some of the instant refunds it issues to customers after product returns, leaving some shoppers on the hook weeks later.

Many customers rely on the convenience of dropping off Amazon returns at stores like Kohl’s, Staples, or Whole Foods and receiving an immediate refund to their credit card or Amazon account. But according to the lawsuit, some of those refunds have been revoked days or weeks later, with Amazon claiming the items were either never received or were returned in damaged condition.

Shopper Bill Middendorf said he returned an item to a store location last year but never received a refund.

“About 10 days passed, nothing from Amazon yet. Typically, I get a refund in a day or two at most,” Middendorf said. “So I came back to the store and said, ‘Hey, do you have any tracking information on this order?’”

According to ConsumerWorld.org, Amazon’s fine print allows the company to charge customers for previously refunded amounts if the returned items are not in their original condition, are missing parts, or disappear entirely during the return process.

Consumer experts recommend that shoppers always get a receipt when dropping off a return and hold onto it for several months in case the refund is later disputed.

“If you’re returning to Amazon, check your account, then check again a week later to make sure they have it, so you don’t waste your money,” said consumer reporter John Matarese.