Amazon Settles DC Lawsuit Over Prime Delivery Practices with $8.25 Million Payout

Amazon has agreed to pay $8.25 million to settle a lawsuit filed by Washington D.C.'s Attorney General over its Prime delivery practices in certain parts of the city. The company will also change its business practices and provide refunds to affected customers.

The lawsuit alleged that Amazon excluded parts of Wards 7 and 8 from full delivery services, leading to slower delivery times for tens of thousands of Prime members living in ZIP codes 20019 and 20020. According to the Attorney General's office, drivers faced safety threats in these areas, which led Amazon to adjust its operations.

Under the terms of the settlement, impacted District residents will receive nearly half of their total membership fee paid from June 2022 to April 2026 as a refund. The company must also notify customers about any delivery exclusions in D.C. ZIP codes moving forward.