Amazon has settled a lawsuit involving two majority-Black neighborhoods in Washington, DC.
As AFROTECH™ previously reported, its Prime members in the 20019 and 20020 zip codes, who have placed 4.5 million orders since 2020, alleged that the company became more dependent on UPS and the U.S. Postal Service starting in 2022 and was not maintaining its own “expedited delivery service.” According to Amazon’s website, Prime membership costs $14.99 monthly or $139 annually.
“There have been specific and targeted acts against drivers delivering Amazon packages” in those areas, Amazon spokesperson Kelly Nantel said at the time, adding that the changes were to “put the safety of delivery drivers first.”
Nantel continued, “We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers. The claims made by the attorney general, that our business practices are somehow discriminatory or deceptive, are categorically false.”
The lawsuit claims residents were not told that the 20019 and 20020 zip codes east of the Anacostia River were excluded from Amazon’s in-house delivery services and that this was the cause of shipping delays, according to a press release. These customers were also reportedly still being charged the full Prime membership price.
The Washington Post reports that Amazon has settled the lawsuit. DC Attorney General Brian Schwalb said Amazon will refund $7.25 million in membership fees to about 69,000 D.C. customers, pay $1 million in penalties to the District, and be required to “reform its practices.”
When reached for comment, Steve Kelly, a representative for Amazon, told AFROTECH™ in a statement shared via email:
“The safety of our customers and the drivers delivering to them has always guided our operational decisions — full stop. In the zip codes at issue, drivers faced specific, documented safety threats, and we adjusted operations to protect them, while still supporting delivery through other carriers. Since this time, conditions have improved and packages are again being delivered to customers in these areas by DSPs and Amazon Flex delivery partners.
“However, claims that our practices, at any point, were deceptive are false — we’re transparent with customers about delivery timelines throughout. Rather than engage in prolonged litigation, we chose to resolve this matter so we can stay focused on what we do best: delivering great service to every customer across Washington, D.C. In no way is this settlement an admission of wrongdoing. We’re proud of the service we provide to D.C. customers and we’re continuing to invest in fast, reliable delivery across every neighborhood in the District.”