Amazon secretly excluded neighborhoods from Prime delivery, DC AG alleges

Amazon quietly carved out two Washington, DC zip codes from being serviced by its fastest Prime delivery service with its own branded trucks, outsourcing deliveries to slower services like UPS and the Postal Service, DC Attorney General Brian Schwalb alleges in a new lawsuit.

The alleged decision led to about 48,000 Prime members living in two zip codes east of the Anacostia River receiving fewer benefits than they were actually paying for (at $14.99 a month or $139 a year), according to Schwalb. The neighborhoods that were allegedly affected include majority-Black and low-income areas. But even when customers noticed and complained about the slower delivery times, the AG alleges, Amazon “misled the consumers to believe it was a coincidence.”

Amazon spokesperson Kelly Nantel tells The Verge in a statement that Amazon changed how it serviced the zip codes cited in the lawsuit due to “specific and targeted acts against drivers delivering Amazon packages” in those areas. “We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers.” Nantel calls the AG’s claims “categorically false” and says Amazon is “always transparent with customers during the shopping journey and checkout process about when, exactly, they can expect their orders to arrive.”

But while Amazon has the right to protect its workers through these changes, Schwalb says it can’t deceive customers while doing so. “Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide. While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one ZIP code is worth less than a dollar in another,” he says in a statement.

Schwalb is suing under DC’s consumer protection law. He’s seeking to stop Amazon from continuing its allegedly deceptive behavior and collect an unspecified amount of civil penalties, restitution, and damages.