Some Amazon customers say their refunds are disappearing weeks after their returns.
The online marketplace is facing a lawsuit over the issue, with plaintiffs claiming the company reversed their refunds after they returned the products. Amazon asserts that in those cases, items were either not received or returned in damaged condition.
The case involves Amazon’s advanced refund policy, which provides consumers with a refund before the company receives an item. With this policy, a customer can initiate a return online and receive a refund before returning the item. If the customer fails to return the item in a timely manner or if the item is damaged, Amazon can charge the customer.
Although the case was filed in 2023, it has been circulating in federal court. Recently, a federal judge decided not to dismiss the case and ordered both sides to provide an updated status report.
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“Plaintiffs have adequately alleged that Amazon stole money directly from their bank accounts and continues to possess it unlawfully. These allegations state a plausible claim for conversion that exists independently of the parties’ contractual relationship,” U.S. District Court Judge Jamal N. Whitehead wrote in a recent motion.
Consumer experts recommend obtaining a receipt when dropping off a return and holding on to it for several months in case the refund is later disputed.
Amazon says it can take up to 30 days for the company to receive and process a return, and in certain circumstances, refund time frames may be longer.
The company advises customers to only initiate refunds if the items are in their original condition. It also reminds customers to use the correct mailing label and drop off items at eligible locations.
