Amazon will return $7.25 million in Prime membership fees to about 69,000 residents of two majority-Black Washington, D.C., ZIP codes (20019 and 20020) after a lawsuit alleged the company excluded those areas from its in-house delivery network without notice. The $8.25 million settlement also includes $1 million in penalties paid to the District. The suit, filed in 2024, claims Amazon relied on third-party carriers and failed to warn customers of resulting delays for much of a four-year period. Amazon says carrier changes were driven by safety concerns and that the settlement is not an admission of wrongdoing.
Amazon To Refund $7.25M To Prime Members In Two Majority-Black D.C. Neighborhoods After Settlement
RICHMOND, CALIFORNIA - JUNE 21: The Amazon Prime logo is displayed on the side of an Amazon delivery truck on June 21, 2023 in Richmond, California. (Photo by Justin Sullivan/Getty Images)
Amazon has agreed to reimburse Prime members in two majority-Black Washington, D.C., neighborhoods after the District of Columbia sued the company for excluding those ZIP codes from its in-house delivery network without notifying customers.
Settlement Details
The settlement, announced by D.C. Attorney General Brian Schwalb, totals $8.25 million. Of that amount, $7.25 million will be returned to roughly 69,000 Prime members living in ZIP codes 20019 and 20020; the remaining $1 million will be paid to the District as penalties.
Allegations and Timeline
The lawsuit, filed in 2024, alleges Amazon relied on third-party carriers such as UPS and the U.S. Postal Service for deliveries to the two ZIP codes and was aware those arrangements would cause delays. According to the complaint, Amazon did not inform affected customers that they were excluded from Amazon's in-house delivery network for much of a four-year period and misrepresented the cause of shipping delays to Prime members.
"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," Attorney General Brian Schwalb said. "Now, we're putting more than $7 million back in the pockets of people who were taken advantage of."
Schwalb emphasized the enforcement message behind the settlement: no company is above the law, and businesses must treat customers fairly regardless of ZIP code.
Amazon's Response
An Amazon spokesperson, Steve Kelly, said the change in delivery carriers was motivated primarily by safety concerns. Kelly added that Amazon chose to resolve the matter rather than prolong litigation and said the settlement is not an admission of wrongdoing.
Sehree Mikel, a six-year D.C. resident who raised the issue with the Office of the Attorney General, told DC News Now she felt disrespected by the company's actions. "A $1 trillion company is taking advantage of communities that are experiencing financial challenges," Mikel said.
What This Means For Residents
Eligible Prime members in the affected ZIP codes should receive information about refunds and the claims process from the District. The settlement underscores the legal risk companies face when service changes are not clearly communicated, particularly to historically underserved communities.
Help us improve.
