In a move that’s sparking significant discussion, the Attorney General in Washington, D.C., has initiated legal action against Amazon. The lawsuit shines a spotlight on what it claims are hidden practices by Amazon, which allegedly prevent residents in specific D.C. ZIP codes from accessing Prime’s advertised fast delivery service.
AG Brian Schwalb’s complaint argues that, from 2022 onward, Amazon has “secretly excluded” two historically underserved ZIP codes from its express delivery network, all while still charging Prime members there the full subscription rate. The annual cost for Amazon’s Prime membership is $139, providing benefits such as two-day shipping and access to streaming services.
“Amazon is making hard-working residents of Wards 7 and 8 pay for a service they promise but aren’t delivering,” Schwalb pointed out in a public statement. He emphasized that while Amazon can alter its operations, “it shouldn’t discreetly value a dollar differently depending on a ZIP code.”
Amazon’s spokesperson, Kelly Nantel, countered these claims, asserting they are “categorically false” and denying any discriminatory or deceptive business practices. Nantel highlighted that Amazon’s priority is delivering to all ZIP codes as quickly as possible but must consider the safety of their delivery drivers.
“In these specific ZIP codes, we’ve faced targeted incidents against our delivery personnel,” Nantel explained. “Adjusting our services was a decision made to ensure their safety.”
Nantel further mentioned Amazon’s readiness to collaborate with the AG’s office to enhance safety and reduce crime in the affected areas.
According to the lawsuit, as of June 2022, Amazon ceased using its own delivery trucks in areas identified by ZIP codes 20019 and 20020, due to safety concerns for their drivers. These ZIP codes cover parts of Southeast and Northeast D.C. Amazon instead relied on external carriers such as UPS and the U.S. Postal Service for deliveries, as per the lawsuit filed in the D.C. Superior Court.
Residents in these neighborhoods, which rank as the second and fourth most populous in the city, have experienced longer delivery times compared to their counterparts in other parts of D.C., despite paying the same Prime membership fee, the suit contends.
Data from the Attorney General’s office shows that prior to Amazon changing their delivery method, over 72% of Prime deliveries in these ZIP codes arrived within two days. After the change, this figure plummeted to as low as 24%, while two-day delivery rates in other parts of D.C. climbed to 74%.
Amazon isn’t new to such controversies surrounding its Prime services. In 2016, following a Bloomberg investigation that revealed discriminatory access to same-day deliveries for Black residents, Amazon expanded service in key cities like Atlanta, Chicago, and D.C.
The neighborhoods highlighted in Schwalb’s complaint have significant Black populations, according to 2022 Census data. Additionally, Amazon is facing another lawsuit from the Federal Trade Commission, filed in June 2023. This suit accuses Amazon of deceiving consumers into signing up for Prime while making it notoriously difficult to cancel, using “dark patterns.” Amazon refutes this claim, regarding it as “false on both factual and legal grounds.” The trial for this case is slated for June 2025.
Schwalb’s lawsuit claims Amazon failed to inform Prime members about their exclusion from the fast delivery network. When residents from these ZIP codes flagged the slower services, Amazon allegedly attributed the delays to factors beyond their control.
The suit accuses Amazon of breaching consumer protection laws within the district and demands the cessation of these deceptive practices, along with damages and punitive measures.
Amazon employs a multifaceted delivery strategy, using both its fleet of branded delivery vans and external carriers like USPS, UPS, FedEx, and a Flex program that involves gig workers using their own vehicles. In its quest to shrink delivery times from two days to one or even a few hours, Amazon has expanded its logistics capabilities considerably.
As Schwalb’s lawsuit highlights, Amazon’s internal policies allow for the exclusion of areas from its delivery network if drivers encounter “violence, intimidation, or harassment.” When such exclusions occur, the company turns to UPS or USPS for deliveries in these zones.
WATCH: Amazon’s strategy on enticing consumers during Black Friday with strategic shopping events.
