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February 27, 2021
December 6, 2024
By Evans Momodu
4 minute read
The District of Columbia's attorney general has filed a lawsuit against Amazon, alleging discriminatory practices in its delivery services for two predominantly Black and low-income ZIP codes in the city (20019 and 20020).
The lawsuit contends that Amazon covertly excluded these neighborhoods from its fastest delivery options available to Prime members, despite charging full membership fees, which promise expedited shipping services.
The complaint claims that in mid-2022, Amazon stopped using its own delivery fleet for these ZIP codes, relying instead on third-party services such as UPS and USPS, which significantly slowed delivery times.
It alleges that Amazon failed to inform affected Prime members about the exclusion, misleading them about the cause of delays while continuing to market Prime with promises of fast delivery.
Before this exclusion, 72% of Prime packages in these neighborhoods reportedly arrived within two days; by 2023, that figure had dropped to 24%. In comparison, other parts of Washington, D.C., maintained a two-day delivery success rate of 75%.
Residents in these neighbourhoods, who number nearly 50,000 Prime members and represent about half the local population, were disproportionately affected. These areas also face challenges like limited retail options and food deserts, increasing reliance on Amazon for essential goods and services.
Amazon has defended its decision, claiming it was based on safety concerns for its delivery drivers after "specific and targeted acts" against them in the affected areas.
The company insists it has been transparent with customers about delivery timelines and highlights that over 1.5 million Prime-eligible products were delivered within two days or less to customers in these neighbourhoods since 2022.
This lawsuit is not the first time Amazon has faced allegations of inequitable service. A 2016 Bloomberg report revealed that Black residents in cities like Atlanta and Chicago were significantly less likely to live in neighbourhoods eligible for Amazon’s same-day delivery.
Similarly, a 2017 DCist investigation reported that Amazon's restaurant delivery service excluded certain neighbourhoods in Washington, including one of the ZIP codes mentioned in this case.
The lawsuit seeks a court order to stop Amazon from engaging in the alleged deceptive practices, restitution or damages for affected Prime members, and civil penalties against the company.
This case raises broader concerns about corporate responsibility and equitable service delivery, as the exclusion of predominantly Black neighbourhoods prompts questions about whether safety concerns justify such disparities or perpetuate systemic inequities.
Amazon has expressed a willingness to collaborate with local officials to address safety concerns in these neighbourhoods. However, the lawsuit presents significant reputational and legal risks for the company as it faces increasing scrutiny over its business practices in marginalised communities.
Source: CNN