Amazon secretly excluded two zip codes from its fastest delivery service while charging nearly 50,000 Prime members living in the areas the full Prime subscription price, the attorney general of the District of Columbia alleges in a lawsuit filed Wednesday.
Amazon violated consumer protection laws by cutting off its fastest delivery service to the two historically lower-income neighborhoods and then misleading customers about why their packages arrived later than advertised when they complained, according to the lawsuit filed in D.C. Superior Court.
The paid subscription service of the world’s largest online retailer, Amazon Prime, offers two-day delivery on millions of items, as well as next-day or same-day delivery on many other products for $139 per year, or $14.99 per month.
Amazon decided in June 2022 to stop using its fleet of branded trucks to make Prime deliveries to DC zip codes 20019 and 20020, and instead serve them with third-party delivery services such as UPS and the US Postal Service. The company knew the decision would result in significantly slower deliveries for the areas but did not tell existing or potential customers, the lawsuit alleges.
Amazon informed the attorney general’s office that the change was due to safety concerns for its drivers, the attorney general said. Still, the company was legally required to announce the change to customers.
“Amazon is charging tens of thousands of hardworking Ward 7 and 8 residents for an expedited delivery service that it promises but does not provide. “While Amazon has every right to make operational changes, it cannot secretly decide that a dollar in one zip code is worth less than a dollar in another,” DC Attorney General Brian Schwalb said in a press release. “We are filing charges to stop this deceptive behavior and ensure that the residents of the District get what they pay for.”
Two-day delivery with Amazon Prime
Last year, the city’s remaining Prime members received packages within two days of checkout 75% of the time, but those in affected zip codes received their orders within two days only 24% of the time, the suit said.
Office of the Attorney General of the District of Columbia
Amazon has dismissed claims that its business practices are discriminatory or deceptive as “categorically false.”
“We want to deliver to every zip code across the country as quickly as possible, but at the same time we must prioritize the safety of delivery people,” an Amazon spokesperson said in an emailed statement.
The spokesperson added: “In the postcodes in question there have been specific and targeted actions against drivers delivering Amazon parcels. We have made a conscious decision to adjust our operations, including delivery routes and times, solely to protect the safety of our customers. drivers.”
The company said it is clear to customers about expected delivery dates. “And we are always transparent with customers throughout the shopping and checkout process about exactly when they can expect their orders to arrive,” the spokesperson said.
Amazon is eager to work with the attorney general’s office to reduce crime and improve safety in those areas, the spokesperson said. “Nevertheless, we will continue with the process and demonstrate that providing fast and accurate delivery times and prioritizing customers and delivery partners are not mutually exclusive.”
The lawsuit is not the first time Amazon has been accused of providing discriminatory services.
A 2016 Bloomberg analysis found that Amazon excluded predominantly Black zip codes from same-day delivery to varying degrees in six major cities. Amazon said at the time that the issue had nothing to do with race.
And two years later, the now-discontinued Amazon Restaurants delivery service excluded the same DC neighborhoods at the center of the Prime delivery lawsuit. The company told local news at the time that it was working to bring more dining options online.
