D.C. Sues Amazon: Prime Delivery Disparities Spark Allegations of Discrimination
December 4, 2024Following the changes, Amazon reportedly switched to using UPS and USPS for deliveries, which has contributed to the decline in timely deliveries, with only 24% of packages reaching customers within two days.
This lawsuit represents the second major legal confrontation between Amazon and the District of Columbia, following an earlier antitrust lawsuit concerning the company's relationships with sellers.
Census data indicates that the neighborhoods affected by these delivery issues are 89% and 90% Black, further emphasizing the racial and socioeconomic disparities in service.
Washington, D.C. Attorney General Brian Schwalb has initiated a lawsuit against Amazon, alleging that the company has excluded certain ZIP codes from its Prime delivery service, resulting in slower delivery times for residents.
The lawsuit highlights a significant drop in delivery performance, noting that before operational changes, over 72% of Prime packages in these areas were delivered within two days, but this figure plummeted to just 25% in 2023.
Nearly half of the residents in the affected neighborhoods are Amazon Prime members, totaling around 50,000 customers who have ordered over 4.5 million Prime-eligible packages in the last four years.
The neighborhoods in question are predominantly low-income and majority-Black, raising concerns about potential discriminatory practices in Amazon's delivery policies.
Schwalb emphasized that operational changes should not lead to discriminatory outcomes, asserting that all customers deserve equal service for their payments.
The lawsuit argues that the exclusion from expedited shipping options effectively denies Prime subscribers in these areas access to the benefits they have paid for, violating consumer protection laws.
These areas represent two-thirds of the District east of the Anacostia River and have been described as 'historically underserved' communities.
In response to the lawsuit, Amazon claims that its delivery practices are not discriminatory and that the operational changes were made for driver safety, citing incidents targeting delivery personnel in these neighborhoods.
The lawsuit also points out that Amazon's marketing suggests two-day delivery is available for 'nearly all addresses in the contiguous U.S.,' without clarifying that certain areas may be excluded.
Summary based on 12 sources
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Sources
The Verge • Dec 4, 2024
Amazon secretly excluded neighborhoods from Prime delivery, DC AG allegesMashable • Dec 4, 2024
Amazon slowed deliveries in Black D.C. neighborhoods, lawsuit alleges