Amazon to refund $7.25 million to Prime members in two majority-Black D.C. neighborhoods
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The settlement follows allegations that Amazon excluded residents in two ZIP codes from its in-house delivery network without telling them.
Amazon Prime users in two majority-Black neighborhoods in Washington D.C. are set to receive millions of dollars in refunds after the company settled a lawsuit with the city.
D.C. Attorney General Brian Schwalb announced the settlement on Thursday. The suit alleged that Amazon failed to serve tens of thousands of residents in the 20019 and 20020 ZIP codes, failing to inform them that their ZIP codes were excluded from Amazon’s in-house delivery services. The suit also alleged that the company misled Prime members about the true cause of their shipping delays.
“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. Now, we’re putting more than $7 million back in the pockets of people who were taken advantage of,” Schwalb said.
He added, “No company is above the law, no matter how big or powerful. My office will always fight to make sure businesses compete on a level playing field and treat their customers fairly so that DC residents get what they pay for, regardless of what zip code they live in.”
Of the $8.25 million settlement, $7.25 million in membership fees will go to about 69,000 residents, while the other $1 million will be paid in penalties to the District.
Amazon spokesperson Steve Kelly said the change in delivery carriers was due mainly to safety concerns.
“Rather than engage in prolonged litigation, we chose to resolve this matter so we can stay focused on what we do best: delivering great service to every customer across Washington, D.C. In no way is this settlement an admission of wrongdoing,” he said in a statement.
The lawsuit was filed in 2024 after Amazon relied on third-party delivery services like UPS and the US Postal Service. Despite knowing it would result in delayed deliveries, Amazon didn’t inform customers for the better part of four years.
“I felt very disrespected,” Sehree Mikel, a six-year D.C. native, who brought the issue with Amazon to the Office of the Attorney General, told DC News Now. “A $1 trillion company is taking advantage of communities that are experiencing financial challenges.”