A month ago I asked this: "Can Amazon terminate an AWS account because you returned a shirt?" [1] I didn't get any satisfactory answers, but this is exactly the kind of scenario I was afraid of. A business that relies on AWS can be wiped out by an automated script in a different department. There is no mitigation since Amazon will also close "linked accounts", so having separate business and personal Amazon accounts…
Must've missed that post. Yes, they can. Even if you're a Prime paying customer , whose main purpose in addition to fast shipping is to to allow you to return things without hassle. See the letter I got below for returning ~$100 worth of shitty merchandise. Mind you, I did not violate any terms or conditions and there was no misuse whatsoever. I replied and got back a very confusing, generic email that didn't answer…
So for less than $100, I cannot imagine why they'd take this action. Is it a lot of returns on inexpensive things (e.g. 20 $5 items).