A class-action lawsuit filed in the U.S. District Court for the Western District of Washington accuses Amazon of withholding portions of customer refunds and failing to address the issue when notified.
The complaint alleges that Amazon systematically retains small amounts from refunds, attributing the shortfall to a technical glitch in its computer systems.
The lawsuit contends that this practice constitutes conversion and unjust enrichment.
The filing describes two specific instances where a customer returned items purchased through his Amazon Prime account but did not receive a full refund.
In September 2024, he returned shoes that did not fit and received approximately 99% of the purchase price.
Later that month, he returned a toilet valve gasket incompatible with his needs and received only 88% of the purchase price.
According to the complaint, he contacted Amazon customer service about the discrepancies.
During a conversation with a representative identified as Kiruthika, the company admitted the issue was due to a “technical error” and promised to refund the remaining funds within 24 hours.
Despite this assurance, he never received the missing amounts.
The lawsuit further alleges that complaints about partial refunds are widespread, citing online forums where other Amazon customers have reported similar experiences.
The suit asserts that Amazon has been unjustly enriched by withholding small portions of refunds, estimating the total to exceed $5 million.
“Amazon has unjustly received a benefit from Plaintiff in the form of partially withheld refunds,” the filing states, adding that the company has taken no corrective action to resolve the issue.
The complaint seeks class-action certification, arguing that Amazon’s practice affects many of its customers, given the scale of its operations.
Amazon processes an estimated 11.95 million orders daily, and the return rate for some product categories, such as clothing and electronics, can reach as high as 40%. The plaintiff contends that even small refund discrepancies could generate millions of dollars in retained funds for the company.
The lawsuit accuses Amazon of conversion, asserting that the company unlawfully retained money owed to customers, and unjust enrichment, claiming that it profited at customers’ expense.
The plaintiff seeks repayment of withheld funds, punitive damages, and an injunction to prevent future refund discrepancies.
Amazon, headquartered in King County, Washington, has not yet commented on the lawsuit.
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