Amazon settles DC lawsuit, agrees to $7.25M refund and $1M penalty
Amazon announced on October 1 that it settled a District of Columbia lawsuit over claims it deliberately made slower deliveries in the city’s low-income neighborhoods, agreeing to refund $7.25 million in Prime fees and pay a $1 million penalty. The attorney general’s office said roughly 69,000 Prime members experienced slower deliveries after Amazon excluded two ZIP codes covering historically low-income areas from its Prime service.
The exclusions have been lifted and Amazon will be required to change its delivery practices in the affected wards. Amazon also promised to notify customers in Wards 7 and 8 of any future restrictions on its delivery service. The lawsuit, filed in 2024 by Attorney General Brian Schwalb, alleged Amazon failed to inform customers about the slower deliveries, thereby violating the District of Columbia’s consumer protection laws. The lawsuit was filed in 2024 by Attorney General Brian Schwalb in the Superior Court of the District of Columbia.
“No corporation is too big to get away with deceiving DC residents,” Brian Schwalb, Attorney General of the District of Columbia said.
The lawsuit was filed in 2024 by Attorney General Brian Schwalb, who accused Amazon of excluding two ZIP codes covering historically low-income areas from Prime delivery and of not informing customers about the slower deliveries. The suit claimed the exclusions violated the District of Columbia’s consumer protection laws. Schwalb warned that no corporation is too big to get away with deceiving DC residents.
What we know
Settlement announced October 1
Amazon will refund $7.25 million in Prime membership fees to affected customers
Amazon will pay a $1 million penalty to the district
Roughly 69,000 Prime members experienced slower deliveries
The lawsuit charged Amazon with excluding two ZIP codes that covered historically low-income areas from its Prime delivery services