Amazon to pay $8.25M to settle DC lawsuit over Prime deliveries in Wards 7 and 8

WASHINGTON - Thousands of Amazon Prime customers in Wards 7 and 8 are set to receive refunds as part of an $8.25 million settlement resolving a lawsuit that accused the company of secretly limiting its delivery service in two D.C. ZIP codes while continuing to charge customers the full price for Prime.

What we know:

The D.C. Attorney General’s Office says more than 69,000 Prime members in ZIP codes 20019 and 20020 were impacted by the change.

Amazon strongly disputes the District’s characterization of its practices and emphasized that the settlement includes no admission of fault.

The dispute dates back to 2022, when the Attorney General’s Office says Amazon stopped using its own delivery network in the two ZIP codes east of the Anacostia River. Packages were instead delivered through third-party carriers, including UPS and the U.S. Postal Service.

The District alleged Amazon did not tell customers about the change, even as delivery times grew longer.

Ward 8 resident Sehree Mickel said she noticed the difference firsthand, with some of her Prime orders taking five, six or even 10 days to arrive.

"I think it’s personal. We are not a priority because we are being discriminated against," Mickel said. "It’s a predominantly Black community. We have seniors in our community, we have teachers, we have small businesses in our community, and when we can’t get the services that we expected — same day, next day — that impacts the way that we’re able to perform and have the bare essentials in our own homes."

Amazon cites driver safety concerns

Amazon says its decision to change delivery operations was driven by safety concerns involving its drivers and denies that its practices were deceptive or discriminatory.

"The safety of our customers and the drivers delivering to them has always guided our operational decisions — full stop," Amazon spokesperson Steve Kelly said in a statement.

Kelly said drivers in the affected ZIP codes faced "specific, documented safety threats" and that Amazon adjusted its operations to protect them while continuing deliveries through other carriers.

"Since this time, conditions have improved and packages are again being delivered to customers in these areas by DSPs and Amazon Flex delivery partners," Kelly said. "However, claims that our practices, at any point, were deceptive are false — we’re transparent with customers about delivery timelines throughout."

The District’s case centered not only on Amazon’s decision to change its delivery operations, but on its allegation that the company failed to disclose that decision and its potential impact on delivery speeds to customers who continued paying the same Prime membership fee.

More than $7 million going back to customers

Under the settlement, Amazon will pay $7.25 million in refunds to affected Prime members and another $1 million in penalties to the District.

Local resident Christina Sessoms said the refunds could make a difference for families.

What they're saying:

"It is important for people to feel like they can trust the system," Sessoms said. "I don’t know what the process is for a refund, but I know that everyone’s pockets would appreciate a refund right now in this economy."

For Mickel, however, the issue extends beyond refunds and Amazon deliveries. She said she wants to see more investment in Wards 7 and 8.

"You know what we need you to do? We need you to come and invest in Ward 7 and 8," Mickel said. "Put a grocery store there, put jobs there, put opportunities there for the residents."

Eligible Prime customers in the affected areas are expected to receive information about their refunds in the coming weeks.

The settlement also requires Amazon to notify D.C. customers about similar delivery exclusions in the future and explain how those changes could affect delivery speeds or other Prime benefits.