Amazon Sued by DC Attorney General Over Alleged Exclusion from Prime Delivery Service

Amazon workers deliver packages on Cyber Monday in New York

Washington, D.C., Attorney General Brian Schwalb has filed a lawsuit against Amazon, accusing the company of secretly excluding residents in two D.C. ZIP codes from its expedited Prime delivery service while still charging them the full membership fee.

The lawsuit claims that Amazon ceased using its own delivery trucks in the ZIP codes 20019 and 20020 in June 2022, citing driver safety concerns. However, this decision led to over 48,000 Prime members in these areas experiencing slower delivery speeds compared to other parts of D.C., despite paying the same $139 annual subscription fee.

“This lawsuit highlights a critical issue of fairness and equality,” Schwalb said. “Amazon is charging tens of thousands of hard-working residents for a delivery service it doesn’t provide. A dollar in one ZIP code cannot be deemed less valuable than a dollar in another.”

Amazon responded by denying the accusations, with spokesperson Kelly Nantel stating that the company’s delivery changes were solely about prioritizing driver safety. “There have been targeted acts of crime against drivers in these areas,” Nantel said. “We have adjusted delivery routes to prioritize the safety of our drivers but remain willing to work with the AG’s office to address crime and safety concerns in these neighborhoods.”

The lawsuit further highlights that delivery rates dropped significantly for residents in the two ZIP codes after the change. Before Amazon's operational shift, over 72% of Prime packages were delivered within two days. After the adjustment, that number plummeted to as low as 24%, while two-day delivery rates in other areas of D.C. remained at 74%.

Schwalb’s lawsuit also accuses Amazon of violating D.C.'s consumer protection laws by failing to notify residents of these operational changes. It seeks damages, penalties, and an end to what it describes as “deceptive business practices.”

This legal action adds to the scrutiny facing Amazon. In June 2023, the Federal Trade Commission sued Amazon for allegedly employing deceptive design tactics to trick users into subscribing to Prime and complicating the cancellation process. Amazon has denied these claims.

The lawsuit underscores the tension between Amazon's logistics strategies and customer equity, particularly in historically underserved communities. Amazon relies on a mix of delivery methods, including gig workers, UPS, FedEx, and the U.S. Postal Service, to maintain delivery operations. However, recent reliance on internal delivery networks has added scrutiny to the company’s ability to maintain equity across different neighborhoods.

Schwalb cites internal policies that allow Amazon to exclude specific areas from its delivery network if drivers experience violence, harassment, or intimidation. Despite these exclusions, residents in affected ZIP codes continue to pay full Prime subscription costs without receiving equal service