Amazon shoppers who said the company mishandled refunds after returns may be in line for compensation under a proposed deal that sets aside $309.5 million and requires changes to parts of Amazon’s returns process.

According to Top Class Actions, a federal judge in Washington gave the proposed settlement preliminary approval on Aug. 18.

The agreement would cover U.S. consumers who started a return or asked for a refund on a physical Amazon product from Sept. 5, 2017, through the date class data is prepared. Consumers must also have either never received a refund, got paid late or in the wrong amount, or were charged again after returning the item.

The $309.5 million pool will stay available for consumers instead of reverting to Amazon. Top Class Actions also said this fund is separate from the $570 million Amazon had already repaid to shoppers and another $34 million it was expected to provide under a tentative agreement.

Several proposed class actions filed in 2023 were folded into the case. The complaints said Amazon advertised “free, no-hassle returns” but often did not properly complete the refund process after customers sent products back.

Amazon denies any wrongdoing, and the court’s preliminary approval does not mean the allegations have been proven or that the company is liable.

Top Class Actions said some returned products were allegedly given the wrong labels or split apart while being processed. Those issues were not always fixed because many shoppers never realized there had been a mistake.

Amazon is also facing a separate class action lawsuit that alleges it “greenwashed” some seafood products as sustainable. For shoppers trying to make smarter buying choices, it can help to learn about greenwashing and other marketing tactics that may not match reality.

The settlement requires Amazon to revise parts of its refund and returns practices. Top Class Actions reported that Amazon must regularly monitor returns so they are handled within the timelines it promises and must notify consumers when refunds are approved or denied.

The final approval hearing is scheduled for March 16, 2027.

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