Washington, D.C.’s attorney general sued Amazon on Wednesday, accusing the company of covertly depriving residents in certain ZIP codes in the nation’s capitol from access to Prime’s high-speed delivery, CNBC reported.
The lawsuit from AG Brian Schwalb alleges that, since 2022, Amazon has “secretly excluded” two “historically underserved” D.C. ZIP codes from its expedited delivery service while charging Prime members living there the full subscription price. 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 Ward 7 and 8 residents for an expedited delivery service it promises but does not provide,” Schwalb said in a statement. “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.”
Attorney General Brian L. Schwalb today sued Amazon.com. Inc. (Amazon) for deceiving District resident into paying for Prime delivery benefits they are not receiving, in violation of District consumer protection law. The Office of the Attorney General (OAG) alleges that since 2022, Amazon has secretly excluded two ZIP codes east of the Anacostia River from its advertised fastest delivery service while continuing to charge approximately 48,000 Prime members living there the full Prime subscription price.
“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,” said Attorney General Schwalb. “We are suing to stop this deceptive conduct and make sure District residents get what they’re paying for.”
Gizmodo reported Amazon tricked customers in two predominantly Black zip codes in Washington, D.C. into paying for its faster Prime delivery service while actually outsourcing deliveries to slower providers, according to a new lawsuit filed by the district’s attorney general.
The suit accuses Amazon of making a secret internal decision in June 2022 to stop delivering to the zip codes 20019 and 20020, both east of the Anacostia River, using its Amazon branded trucks. Instead, the company began using slower services like UPS and the U.S. Postal Service to bring back packages to those neighborhoods, which are 89 and 90 percent Black, respectively, according to census data.
Meanwhile, the company continued to advertise and promote its faster delivery times to the roughly 48,000 Prime members in those zip codes, according to the complaint.
In my opinion, it sounds like Attorney General Brian L. Schwalb is going to target Amazon because the company was forcing people to pay for Prime delivery benefits that they did not receive.