Amazon Pays $8.25M to Settle D.C. Delivery Discrimination Lawsuit
Following a lawsuit filed by the District of Columbia over “deceptive” business practices, Amazon has agreed to an $8.25 million settlement for alleged discriminatory delivery practices—proving that not even the e-commerce giant is above the law. That day of reckoning came after Black residents in low-income Southeast D.C. neighborhoods noticed their packages weren’t arriving within the promised two-day window, despite paying nearly $20 a month for Prime membership.
Approximately 69,000 residents in ZIP codes 20019 and 20020—two predominantly Black neighborhoods in Washington, D.C.—were affected by Amazon’s decision to stop in-house delivery in June 2022, despite paying the exact same price for Prime as everyone else, according to the Washington Sun. According to D.C. Attorney General Brian Schwalb, the exclusions were in place for four years, as NBC 4 Washington reported.
Instead of Amazon drivers delivering orders, the company contracted deliveries to neighborhoods in Ward 7 and Ward 8 to other mail carriers like UPS and the U.S. Postal Service. That decision prolonged the amount of time it took for Black Prime members to receive their deliveries.
“Amazon deceived thousands of its customers who live East of the River, collecting their Prime membership fees while secretly excluding them from full Prime membership benefits,” Schwalb said in a statement. “No company is above the law, no matter how big or powerful.” Turns out, not even Amazon is too big to face the music.
RELATED: Chocolate City Under Trump: A Fight for Identity, Power and Place in DC
Amazon agreed to refund $7.25 million in subscription fees to the affected customers who lived east of the Anacostia River. They will receive about half of their total Prime membership fees paid from June 2022 to April 2026, The Washington Post reported.
Despite the hefty settlement, it’s not an admission of fault. According to Amazon spokesperson Steve Kelly, Amazon only agreed to settle to avoid prolonged litigation, per the Washington Sun. He argued Amazon used third-party mail carriers after in-house drivers faced safety threats in the area, and in-house delivery resumed once those risks were not as prevalent.
“The safety of our customers and the drivers delivering to them has always guided our operational decisions — full stop,” a spokesman said NBC 4 Washington reported. “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.”
The settlement also requires the online retailer to pay $1 million in penalties directly to the District, and in the future, the company must notify customers with affected addresses of any expedited delivery exclusions, according to NBC 4 Washington.
The spokesman added, “claims that our practices, at any point, were deceptive are false — we’re transparent with customers about delivery timelines throughout.” But Sehree Mickel, who has lived in the Benning Ridge neighborhood of D.C. for more than six years, told the Washington Post that the settlement confirmed her initial concern that Amazon was “red lining” lower-income neighborhoods in the city.
“It’s an acknowledgment of a wrongdoing that had been done against this community,” Mickel suggested. “So I believe this settlement speaks volumes.”
