The District of Columbia sued Amazon on Wednesday, alleging the company secretly stopped providing its fastest delivery service to residents of two predominantly Black neighborhoods while still charging millions of dollars for a membership that promises the benefit. As the AP reports, the lawsuit alleges that in mid-2022, the Seattle-based online retailer imposed what it called a delivery "exclusion" on two low-income ZIP codes in the district and began relying exclusively on third-party delivery services such as UPS and the US Postal Service, rather than its own delivery systems.
The complaint filed in District of Columbia Superior Court revolves around Amazon's Prime membership, which costs consumers $139 per year or $14.99 per month for fast deliveries—including one-day, two-day, and same-day shipments—along with other enhancements. Amazon says it made the delivery change to the affected ZIP codes based on concerns about driver safety. "There have been specific and targeted acts against drivers delivering Amazon packages" in the two ZIP codes and the company made the change to "put the safety of delivery drivers first," Amazon rep Kelly Nantel said.
The District of Columbia's attorney general's office alleged the company never told Prime members in the two ZIP codes about the change even though they experienced slower deliveries as a result. Amazon also did not tell new customers about the exclusions when they signed up for Prime memberships, the lawsuit says. "Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide," District of Columbia Attorney General Brian Schwalb said in a statement. "While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one ZIP code is worth less than a dollar in another."
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When some customers in the city complained about the slower deliveries, Amazon concealed the true reason for the delays and "deceptively implied" that the delays "were simply due to natural fluctuations in shipping circumstances, rather than an affirmative decision by Amazon," the lawsuit says. District officials are asking the court to issue an order prohibiting Amazon from "engaging in unfair or deceptive practices." They also want the company to pay restitution or damages to affected Prime members, as well as civil penalties. (More Amazon stories.)
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