The Washington, D.C. attorney general filed a lawsuit. Amazon On Wednesday, it accused the company of secretly stripping residents of certain zip codes in the nation’s capital of access to Prime fast shipping.
AG Brian Schwalb’s lawsuit alleges that starting in 2022, Amazon will “secretly exclude” two “historically underserved” D.C. ZIP codes from its express delivery service, allowing Prime members living in those areas to claims to be charging the full amount of the subscription fee. Amazon’s Prime membership program costs $139 a year and includes perks like two-day shipping and access to streaming content.
“Amazon is charging tens of thousands of hard-working residents of the 7th and 8th Wards for expedited shipping services it promises but never delivers,” Schwalb said in a statement. “Amazon has every right to make operational changes, but it cannot secretly decide that a dollar in one zip code is worth less than a dollar in another zip code.”
Amazon spokeswoman Kelly Nantel said in a statement that it is “completely false” that the company’s business practices are “discriminatory or deceptive.”
“We want to be able to deliver to every zip code across the country as quickly as possible, but at the same time we have to prioritize the safety of our delivery drivers,” Nantel said in a statement. “In the postcodes in question, specific and targeted actions are being taken against drivers delivering Amazon packages. We are making adjustments to operations, including delivery routes and delivery times, for the sole reason of protecting the safety of our drivers. It was a deliberate choice.”
Nantel said Amazon has offered to work with the directorate on efforts to “reduce crime and improve safety in these areas.”
Amazon stopped using its delivery trucks to transport packages to and from zip codes 20019 and 20020 in June 2022, citing driver safety concerns, according to the complaint. The ZIP code spans neighborhoods in the Southeast and Northeast regions of Washington, DC. Instead of an internal delivery network, the company relied on external delivery companies, including: UPS The complaint filed in Washington, D.C. Superior Court says the U.S. Postal Service was contacted to deliver the package.
With this decision, residents of these areas will 2nd and 4th According to the complaint, D.C.’s most populous ZIP codes experience “significantly longer delivery times than ZIP codes in other areas, despite paying the exact same Prime membership price.”
Before Amazon implemented this change, more than 72% of Prime packages in the two ZIP codes were delivered within two days of checkout, according to AG data. That number dropped to 24% after the move, but district-wide two-day delivery rates rose to 74%.
Amazon has previously faced complaints about disparities in its Prime program. In 2016, the company I said I would expand. Access to same-day delivery in cities including Atlanta, Chicago, Dallas, and Washington Bloomberg research Black residents were found to be “about half as likely” to qualify for same-day delivery compared to white residents.
According to 2022 Census data from the American Community Survey, the ZIP codes in Schwalb’s complaint are in areas with large black populations.
The U.S. Federal Trade Commission also sued Amazon in June 2023, alleging that the company deceived consumers by using so-called dark patterns, or deceptive design tactics meant to guide users into making certain choices. It accused the company of forcing people to sign up for Prime and “thwarting” their attempts to cancel. . Amazon said the complaint was “contrary to the facts and law.” The case is scheduled to go to trial in June 2025.
According to Schwalb’s complaint, Amazon never informed Prime members in the region about the shipping exclusion. When consumers in affected ZIP codes complained to Amazon about slow delivery speeds, the company said it was due to circumstances beyond its control, according to the complaint.
The lawsuit alleges Amazon violates the District’s consumer protection laws. It also asks the court to not only award damages and fines, but also to “put an end to Amazon’s deceptive practices.”
To get packages to customers’ doorsteps, Amazon uses its own contract delivery companies, typically distinguishable by Amazon-branded cargo vans, as well as USPS, UPS, fedexa network of gig workers who make deliveries from their own cars as part of a flex program.
Amazon has rapidly expanded its in-house logistics force in recent years, aiming to shorten deliveries from two days to one day or even hours. In July, the company said In the first half of this year, it recorded the “fastest delivery speed in Prime history,” delivering more than 5 billion items within one day.
By relying on its own workforce, Amazon has gained greater control over its delivery operations.
In his complaint, Mr. Schwalb cited an internal policy that allows Amazon to exclude certain areas from its delivery network if a driver is subjected to “violence, intimidation, or harassment.” The company relies on UPS or USPS to deliver packages to excluded areas.
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