Amazon is being sued by the District of Columbia, which claims the company secretly stopped offering its fastest delivery service to two low-income neighborhoods while continuing to charge customers full price for Amazon Prime.
The lawsuit, filed Wednesday in DC Superior Court accuses the online retailer of misleading nearly 50,000 Prime members in ZIP codes 20019 and 20020, located in predominantly Black and lower-income areas.
Amazon Faces Lawsuit Over Delayed Deliveries in Low-Income DC Neighborhoods
These changes resulted in slower deliveries for residents who had paid for faster service, according to the District's attorney general.
The lawsuit alleges that Amazon made these changes in June 2022 by no longer using its own branded trucks to deliver packages in these areas, CBS News said.
Instead, it began relying on third-party services like UPS and the US Postal Service, which resulted in delays for customers.
The company did not inform residents about the shift when they signed up for Amazon Prime, which advertises two-day, one-day, and even same-day delivery options. Prior to this change, residents of these ZIP codes received their packages within two days 72% of the time. After the change, however, only 24% of deliveries were made on time, the suit claims.
Amazon's Prime service, which costs $139 a year or $14.99 a month, promises fast deliveries to members. However, the District's attorney general, Brian Schwalb, stated that Amazon's decision to exclude certain neighborhoods from its fast delivery service was unfair. He argued that while Amazon has the right to adjust its operations, it cannot do so in a way that discriminates against certain areas.
He added that residents in these neighborhoods paid for the same service as other Prime members but did not receive it.
Amazon Defends Slower DC Deliveries Citing Safety Concerns
Amazon defended its decision by citing safety concerns for its drivers in these neighborhoods.
A company spokesperson explained that there had been specific incidents involving drivers in these areas, leading the company to adjust its delivery methods for safety reasons.
According to Newsweek, the spokesperson also stated that Amazon was transparent with customers about delivery expectations, though the lawsuit argues that the company did not clearly explain the policy change or the reasons behind it.
This lawsuit highlights ongoing concerns about Amazon's practices in low-income and predominantly Black neighborhoods. The company has faced similar accusations in the past, including in 2016, when it was found to have excluded certain ZIP codes from same-day delivery options.
In response to the latest lawsuit, Amazon denied any claims of discriminatory or deceptive practices and emphasized its commitment to safety and customer service.
The District of Columbia is seeking restitution for affected customers and civil penalties against Amazon.
If successful, the lawsuit could have significant effects on how Amazon operates in underserved communities and how it handles customer service in the future. The case is also part of a broader legal battle for Amazon, which is already facing antitrust allegations related to its business practices.