Amazon Faces Lawsuit Over Delivery Practices #

Amazon is facing a lawsuit for allegedly violating consumer protection laws by slowing down its Prime delivery service in lower-income neighborhoods within the District of Columbia. The complaint alleges that Amazon stopped offering its fastest delivery options to around 50,000 Prime subscribers in certain ZIP codes, outsourcing these deliveries to third parties like United Parcel Service and the Postal Service, leading to slower delivery times.

Previously, Amazon used its own logistics network to serve these areas but began outsourcing deliveries in 2022. This change was not disclosed to consumers, affecting the promised delivery speeds for Prime membership, which costs $139 annually. In 2023, Prime members in most of the city received their packages within two days 75% of the time, whereas those in the affected neighborhoods only received packages within the same timeframe 24% of the time.

The lawsuit highlights concerns over Amazon’s treatment of customers, with the claim that the company cannot decide that a dollar spent in one ZIP code is worth less than in another. Amazon had purportedly attributed the change to safety concerns, yet failed to inform consumers, leading to the suit aimed at rectifying this alleged deceptive conduct and ensuring fair service for all District residents.

Additionally, the lawsuit is part of a larger regulatory scrutiny facing Amazon, including a revived price-fixing allegation suit and accusations of monopolistic practices by the Federal Trade Commission, both challenging Amazon’s influence and dominance in online retail markets.