The District of Columbia filed a lawsuit against Amazon on Wednesday, December 4th, accusing the company of secretly denying residents in two predominantly Black neighborhoods access to the fast delivery benefits of its Prime membership while continuing to charge them the full price. The suit alleges that Amazon misled nearly 50,000 Prime members in Wards 7 and 8, who paid for expedited shipping services that Amazon failed to provide.
The complaint, filed in the Superior Court of the District of Columbia, centers on Amazon’s delivery practices and the company’s failure to disclose service changes. According to the lawsuit, in mid-2022, Amazon imposed a “delivery exclusion” on ZIP codes 20019 and 20020, which cover parts of Wards 7 and 8. Despite continuing to charge the full $139 annual fee for Prime memberships, Amazon switched from using its delivery network to third-party services, such as UPS and the U.S. Postal Service, for these areas. As a result, residents experienced slower delivery times.
Amazon, however, defended its decision, citing concerns over driver safety. “There have been specific and targeted acts against drivers delivering Amazon packages,” said Kelly Nantel, an Amazon spokesperson. “We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.”
While the company maintains that safety was the driving factor, District Attorney General Brian Schwalb argued that Amazon’s actions were deceptive. “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,” Schwalb said. “It cannot covertly decide that a dollar in one ZIP code is worth less than a dollar in another.”
The lawsuit also highlights the impact of these changes on residents. With fewer retail stores and services in the area, many affected individuals rely heavily on Amazon for deliveries. In fact, over the past four years, residents in these ZIP codes have placed more than 4.5 million orders through Prime. Before the exclusion, over 72% of Prime packages in these neighborhoods were delivered within two days. By 2023, that number dropped to just 24%, starkly contrasting the 75% delivery rate for Prime members in other parts of the city.
While Amazon claims it continues to deliver some products quickly, the lawsuit asserts that the company’s lack of transparency about the changes misled customers into believing they were receiving the same service as others. “The claims made by the attorney general, that our business practices are somehow discriminatory or deceptive, are categorically false,” Nantel stated.
The case continues to draw attention to concerns about disparities in service across neighborhoods, especially in predominantly Black areas.
