Amazon Sued for Reneging on Some Instant Refunds

Rather than make customers wait until returned merchandise is actually received by them, Amazon has a policy of sometimes issuing instant refunds as soon as a shopper returns the product at a dropoff location like at Kohl’s, Staples, UPS, or Whole Foods.

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Of course, they reserve the right to reverse an instant refund that they issued if they never actually receive the returned items.

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Back in 2023, Amazon was sued by a group of consumers from various states alleging that they properly brought goods to an authorized Amazon return location, got an instant refund, but then weeks and weeks later got emails claiming the goods had not actually been received by Amazon. As a result, their accounts were charged for the goods again.

In all these cases, when these consumers contacted customer service at Amazon, they acknowledged that their purchases had in fact been received, and were promised a credit and given an apology. None of them received a straight answer of how such mistakes can happen.

So Amazon is being sued in a class action for breach of contract, unfair or deceptive practices and unjust enrichment.

Just last week, a federal ruled against Amazon’s motion to dismiss, and said the case can proceed.

“Plaintiffs have adequately alleged that Amazon stole money directly from their bank accounts and continues to possess it unlawfully,” said Judge Jamal N. Whitehead of the US District Court for the Western District of Washington.