Key Takeaways
Amazon allegedly overcharged customers in two DC ZIP codes by using third-party delivery services, slowing down delivery times.
DC Attorney General filed a lawsuit against Amazon, claiming 4.5 million packages were delayed, affecting low-income families.
Amazon denies allegations and states delivery route changes were made to protect driver safety, not to deceive customers.
Amazon is being accused of slowing down Prime deliveries in certain parts of the District of Columbia. A lawsuit is being filed, alleging that Amazon has violated a local consumer protection law. When accused by low-income families within the district, Amazon is claimed to have lied to them.
DC Attorney General Brian Schwalb has brought forth the lawsuit, which claims Amazon overcharged around 48,000 subscribers in "historically underserved" areas within two ZIP codes "east of the Anacostia River". Schwalb claims that Amazon has changed how its Prime delivery systems work within the 20019 and 20020 ZIP code areas, overcharging said customers by upwards of millions.
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Amazon is accused of quietly changing its policies in 2022
The lawsuit claims third-party services were used, resulting in slow deliveries
Amazon package being delivered
Amazon is claimed to have swapped its policies for completing deliveries across these two DC-based ZIP codes in the middle of 2022. Rather than using its in-house delivery for Prime packages, Amazon is accused of using USPS, UPS, and other third-party services to complete deliveries. These services are "often slower" Schwalb states. It's believed that Amazon was aware that leveraging third-party services would result in slower services.
Prime members in the 20019 and 20020 ZIP code areas were never made aware of this change. New and existing Prime members never received a notification, something Schwalb states should have been flagged. Part of the appeal of a Prime subscription is fast delivery. Members of the services within the affected ZIP code areas still paid full prices despite the changes.
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Affected packages are upwards of over 4 million, affect low-income family's needs
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The lawsuit goes on to claim that Amazon's delivery service has been steadily suffering within the ZIP code area. Even before the 2022 changes in delivery policies, package delays were being experienced. 4.5 million packages were delayed to customers in the past four years. It's claimed that in 2023, only 25 percent of packages arrived in two days following the order. This is compared to roughly 72 percent prior to Amazon's change to delivery methods. Schwalb believes Amazon should update how it advertises its services if it is unwilling to meet fast delivery expectations.
Amazon is said to have offered to "work together" with Schwalb's office to "to reduce crime and improve safety in these areas."
While speaking with Ars Technica, Amazon spokesperson Kelly Nantel claims the allegations are "categorically false". In a statement, Nantel says "In the ZIP codes in question, there have been specific and targeted acts against drivers delivering Amazon packages." Nantel continues, "We made the deliberate choice to adjust our operations, including delivery routes and times, for the sole reason of protecting the safety of drivers."
Amazon is said to have offered to "work together" with Schwalb's office "to reduce crime and improve safety in these areas." However, it doesn't seem as though the company is open to changing how it advertises Prime's delivery services in the U.S.
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