Amazon secretly excluded two ZIP codes from its fastest delivery service while charging nearly 50,000 Prime members who live in the area the full price of its Prime membership, the District of Columbia attorney general claims in a filing Wednesday.
Amazon violated consumer protection laws by stopping its fastest delivery service to the two historically low-income neighborhoods, then misled customers about why their packages were arriving later than expected when they complained, according to the suit filed in DC Superior Court.
The paid subscription service from the world’s largest online retailer, Amazon Prime, offers two-day delivery for millions of items, as well as next-day or same-day delivery for 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, instead fulfilling them with third-party delivery services like UPS and the U.S. Postal Service. The company knew the decision would cause a significant slowdown in deliveries to those areas, but failed to notify existing or potential customers, the suit alleges.
Amazon informed the attorney general’s office that the change resulted from safety concerns for its drivers, the attorney general said. Still, the company was legally required to disclose the change to customers.
“Amazon charges tens of thousands of hardworking Wards 7 and 8 residents for expedited delivery service that it promises but fails to deliver. 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. release“We are taking legal action to stop this deceptive conduct and ensure District residents get what they pay for.”
Amazon Prime two-day delivery
Last year, the rest of the city’s Prime members received their packages within two days of payment in 75% of cases, but those in the affected zip codes received their orders within two days in just 24% of cases , according to the suit.
Office of the Attorney General of the District of Columbia
Amazon has rejected as “categorically false” claims that its business practices are discriminatory or deceptive.
“We want to be able to deliver as quickly as possible to every zip code across the country, but at the same time, we need to prioritize the safety of delivery drivers,” an Amazon spokesperson said in a press release sent by email.
The spokesperson added: “In the zip codes in question, specific and targeted acts were committed against drivers delivering Amazon packages. We have made a deliberate choice to adjust our operations, including routes and delivery times, with the sole purpose of protecting driver safety.
The company said it was clear with customers about expected delivery dates. “And we are always transparent with customers during the purchasing journey and checkout process about exactly when they can expect their orders to arrive,” the spokesperson said.
Amazon would like to work with the attorney general’s office to reduce crime and improve safety in these areas, the spokesperson said. “Nevertheless, we will continue the process and demonstrate that providing fast and accurate delivery times and giving equal priority to customers and delivery partners are not mutually exclusive.”
This lawsuit is not the first time Amazon has been accused of providing a discriminatory service.
A Bloomberg analysis In 2016, Amazon was found to exclude predominantly black zip codes to varying degrees from same-day delivery in six major cities. Amazon said at the time that the problem had nothing to do with race.
And two years later, Amazon Restaurants’ since-discontinued delivery service excluded the same D.C. neighborhoods that are the subject of the Prime delivery lawsuit. The company said local news back when it was working to bring more restaurants online.