cross-posted from: https://piefed.world/...
Attorney General Brian L. Schwalb today announced that Amazon.com, Inc. (Amazon) will pay $8.25 million in refunds and penalties and change its business practices to resolve the District’s lawsuit alleging that Amazon deceived tens of thousands of DC residents by failing to inform them that their ZIP codes were excluded from Amazon’s in-house delivery services and misleading Prime members about the true cause of shipping delays.
OAG sued Amazon in 2024, alleging that the company had violated DC consumer protection law by secretly excluding two DC ZIP codes east of the Anacostia River (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 DC residents living there the full Prime subscription price. Now, under the terms of a settlement agreement, impacted District residents will get back nearly half of their total membership fee that they paid during the exclusion period. Amazon will pay back $7.25 million in Prime membership fees and pay $1 million in penalties to the District. Amazon stopped excluding Ward 7 and 8 consumers from full delivery services in April 2026, and this settlement puts safeguards in place to ensure DC customers can make informed decisions about their Prime memberships if Amazon chooses to implement delivery exclusions in the future.

so they paid peanuts for something they'll likely continue to do.
save