Restitution
Restitution is money a company must give back because it was taken or earned unfairly, such as a refund of what customers paid.
Also called: restitutionary relief, consumer redress
Restitution is money a company must give back because it was taken or earned unfairly, such as a refund of what customers paid.
What it means
Restitution is a remedy that returns money or property to the people it was taken from. The goal is to undo an unfair gain. A court or agency looks at what the company took, such as the price you paid for something it misdescribed, and orders that amount handed back.
It is different from damages. Damages pay you for a loss, such as a repair bill, lost wages or other harm. Restitution focuses on what the other side got at your expense, so refunds and partial refunds are a typical form.
You see restitution in consumer protection cases, including government ones. The Federal Trade Commission, for example, uses money it collects from companies to pay refunds to people who were harmed. A class action settlement can also work like restitution when it pays back part of what class members paid.
What it means for you
When a settlement works like restitution, your payment usually tracks what you paid. That can mean you need a receipt, order email or account record to show the amount, or you may get a flat refund per purchase. Government refunds often work differently. The FTC says most of its cases do not require a claim, because it can use the company's customer records. It also says it never asks for upfront fees or sensitive details like a Social Security number. Read the notice, and never pay anyone to release a refund.
Example
Say a subscription app advertised a free first year but charged customers anyway. A settlement sets up restitution: customers billed during the promised free period can claim back those charges, up to a limit. The payment is tied to what you were charged, not to the frustration or inconvenience you felt.
FAQ
Damages compensate you for harm you suffered, such as repair costs or lost income. Restitution returns what the other side gained from you, such as the money you paid. In consumer cases the two can overlap, since a refund can do both.
No. The FTC says it never requires upfront fees and never asks for sensitive information such as a Social Security number or bank account number. Anyone claiming to be from the FTC who asks you for money is a scammer.
Related terms
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.