Amazon Sued for Discriminatory Delivery Practices in Underserved Communities

Discriminatory Delivery Practices

A recent lawsuit filed by the Washington, D.C. attorney general alleges that a major e-commerce company has been violating consumer protection laws by withholding benefits from Prime members in two specific zip codes. The lawsuit claims that the company deliberately stopped providing its fastest delivery service to nearly 50,000 Prime members living in historically underserved communities east of the Anacostia River.

Prime Members Left in the Dark

Prime members pay a premium of $139 per year or $14.99 per month, expecting fast and reliable delivery services. However, the lawsuit states that the company secretly reduced its services to these two zip codes, misleading existing members and inducing others to sign up for Prime.

A History of Deception

Before the alleged policy change, over 72% of Prime deliveries to these areas occurred within two days of checkout. Afterward, only a quarter of deliveries met this standard. Meanwhile, delivery speeds in other areas of the city improved, with nearly three-quarters of Prime members enjoying two-day delivery.

Safety Concerns or Excuse?

The company claims that it adjusted its operations to protect the safety of drivers, citing targeted acts against drivers delivering packages in these zip codes. However, the lawsuit alleges that the company partners exclusively with third-party delivery services like UPS and the US Postal Service, which are often slower than the company’s own delivery services.

Lack of Transparency

The lawsuit claims that the company fails to disclose limitations on same-day shipping until after someone from the affected zip codes signs up for Prime. The company responds that customers are provided with estimated delivery times after they place an order. However, the attorney general argues that the company has a responsibility to be transparent about its services and cannot covertly decide that a dollar in one zip code is worth less than a dollar in another.

Fighting for Fairness

The attorney general’s office is seeking to stop this deceptive conduct and ensure that District residents get what they’re paying for. As Attorney General Brian Schwalb stated, “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.”

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