Online retailers are being called on to revamp returns policies, some of which breach consumer law in offering buy now, pay later (BNPL) schemes that put shoppers at risk of losing their money.

Nearly half of consumers who planned to make returns say they ended up keeping defective items simply because the return process was too difficult or expensive.

Amazon.com Inc. has reached a settlement, which plaintiffs counsel estimates to total $1 billion, in consumer fraud class action litigation targeting its return policy. Plaintiffs filed a class action ...