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Mayor and Agencies

D.C. attorney general forces Amazon to pay $8.25 million after four years of slower deliveries east of the Anacostia

Attorney General Brian Schwalb announced Thursday that roughly 69,000 Prime members in ZIP codes 20019 and 20020 will get money back, and Amazon must now tell customers upfront if their neighborhood is cut off from the company's own trucks.

For four years, tens of thousands of people in Wards 7 and 8 paid the same price for Amazon Prime as everyone else in the city. What they got was not the same service. Their packages moved through UPS or the U.S. Postal Service while neighbors on the other side of the Anacostia got Amazon's own branded trucks. Nobody at the company told them.

That changed Thursday. D.C. Attorney General Brian Schwalb announced that Amazon will pay $8.25 million to settle the District's 2024 lawsuit over the practice. The money splits two ways: impacted District residents will get back nearly half of their total membership fee paid during the exclusion period, with Amazon paying $7.25 million in Prime membership fees and $1 million in penalties to the District.

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. Those are the two easternmost ZIP codes in the District, covering neighborhoods including Deanwood, Benning Heights, Capitol View, Fort Dupont, and Hillcrest.

What Amazon actually did

The Office of the Attorney General sued Amazon in 2024, alleging the company had violated D.C. consumer protection law by secretly excluding ZIP codes 20019 and 20020 from Amazon's in-house, Amazon-branded delivery services, significantly slowing Prime deliveries to those areas, while continuing to charge tens of thousands of D.C. residents the full Prime subscription price.

The lawsuit accused Amazon of secretly excluding Ward 7 and Ward 8 ZIP codes from the company's own branded delivery services, using third-party carriers such as UPS and the U.S. Postal Service instead, which significantly slowed delivery times, despite charging the same price for Prime memberships.

Amazon's position: driver safety. 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.

The company also disputed the AG's framing of what customers experienced. A spokesperson said, "claims that our practices, at any point, were deceptive are false, we're transparent with customers about delivery timelines throughout." Amazon said the settlement is not an admission of wrongdoing and that the company wanted to avoid prolonged litigation in order to focus on its delivery services.

The AG's office saw it differently. When consumers complained of slow delivery, Amazon concealed the exclusion and led customers to believe it was due to other circumstances, OAG said in its announcement.

Four years. Slower packages. No notice.

The timeline matters. The lawsuit alleged Amazon stopped using its own branded trucks to deliver in the two ZIP codes starting in June 2022, citing driver safety, and shifted to slower third-party carriers, without informing customers of the change. Amazon stopped the exclusions in Wards 7 and 8 in April 2026, according to the AG's office. That is roughly four years during which residents in those two ZIP codes paid for a service they were not receiving.

Under the terms of the settlement agreement, impacted District residents will get back nearly half of the total membership fee they paid from June 2022 to April 2026. The math on a standard annual Prime membership works out to roughly $50 to $60 per customer, depending on when they joined and what plan they held, though the actual refund per person will vary.

Ward 8 resident Sehree Mickel said the difference was not abstract. Mickel said she noticed the difference firsthand, with some of her Prime orders taking five, six or even 10 days to arrive. 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."

Another Ward 8 resident, quoted by WUSA9, put it plainly: "I feel like it's a majority Black community and it's not actually getting the services you get on the other side of the river."

This is not Amazon's first time in this particular spotlight

The 2022 exclusions did not appear from nowhere. A 2016 Bloomberg analysis found the company's same-day delivery service skipped over predominantly Black ZIP codes in six major U.S. cities, and Amazon's now-defunct restaurant delivery arm excluded those same D.C. neighborhoods two years later, years before this lawsuit was filed. Amazon said at the time the exclusions had nothing to do with race.

The AG's office noted the pattern in its announcement Thursday. Schwalb said in an Instagram post that "in 2022, Amazon started excluding Prime members with zip codes east of the river from in-house delivery services. Amazon knew this could slow down delivery speeds, but it did it anyway."

The settlement consent decree was filed Thursday in D.C. Superior Court. The settlement provides $7.25 million in refunds to Prime members in Ward 7 and 8 ZIP codes, in addition to requiring the company to pay the District $1 million in penalties, according to a signed consent decree filed Thursday in the D.C. Superior Court.

What the settlement requires going forward

Money is part of it. The structural piece matters too.

Going forward, the settlement requires Amazon to notify both customers and the OAG if it excludes any D.C. ZIP code from full delivery service for safety reasons. In the future, the company must notify existing customers and prospective customers who enter an affected address during the signup process of any expedited delivery exclusions.

Amazon will also change its business practices after Schwalb's office said the company deceived tens of thousands of D.C. residents. The OAG framed the new notification requirement as a consumer-protection floor: if Amazon ever pulls its trucks out of a D.C. neighborhood again, residents will know before they pay.

Schwalb put his office's position in blunt terms. "No company is above the law, no matter how big or powerful. My office will always fight to make sure businesses compete on a level playing field and treat their customers fairly so that DC residents get what they pay for, regardless of what zip code they live in," Schwalb said.

What D.C. residents should watch

Are you eligible for a refund? Eligible customers will receive details about their refunds in coming weeks. If you held an Amazon Prime membership with a billing or delivery address in ZIP code 20019 or 20020 at any point between June 2022 and April 2026, you are likely in the pool of roughly 69,000 customers. Watch for an email from Amazon. The OAG's office at oag.dc.gov is the authoritative source on how distribution will work.

The new disclosure requirement. Amazon stopped excluding Ward 7 and 8 consumers from full delivery services in April 2026, and this settlement puts safeguards in place to ensure D.C. customers can make informed decisions about their Prime memberships if Amazon chooses to implement delivery exclusions in the future. Whether those safeguards hold depends on OAG monitoring and, frankly, whether Amazon's systems are set up to trigger the notification automatically or require a human to remember to file it.

The bigger pattern east of the river. The Amazon case sits alongside a longer record of businesses treating Ward 7 and Ward 8 differently. One resident quoted by DC News Now described the neighborhoods as "actually in a food desert, a resource desert for basic needs." Whether Thursday's settlement produces any ripple effect on how the D.C. AG's office scrutinizes other companies that operate differentially across the Anacostia is an open question Schwalb's office has not yet answered publicly.

The election timing. Schwalb is on the November 3 ballot, running for re-election as incumbent Democratic attorney general. The Amazon announcement landed 33 days before Election Day, and it is the highest-profile consumer action his office has announced this year. That context does not make the settlement less real, but residents can weigh it however they choose.

The last package that arrived late at a Ward 7 doorstep under the old arrangement came in April 2026. The refund checks have not arrived yet.


Sources