Amazon Lawsuit Alleges Prime Members in Certain Zip Codes Denied Fast Shipping Due to Exclusionary Policy

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A proposed class action lawsuit alleges Amazon.com has secretly imposed Prime shipping exclusions in certain zip codes nationwide, which has caused customers to experience delivery delays that surpass the retailer’s promised deadlines.

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The 30-page amended complaint was filed by five Prime members who live in zip codes 20019 and 20020, a historically underserved part of Washington, D.C. The plaintiffs claim that Amazon’s alleged decision to limit how it delivers packages to residences in their zip codes means that Prime members are not getting the speedy delivery times they’re paying for.

According to the lawsuit against Amazon, the retailer quietly decided in June 2022 to impose “delivery exclusions” on certain zip codes nationwide due to “concerns about driver safety.” For these zip codes, rather than guaranteeing expedited delivery by using its in-house Amazon delivery systems, the company now relies exclusively on third-party services such as UPS and USPS, which often results in slower delivery times, the suit relays.

As a result of Amazon’s decision, the speed and quality of Prime service for members in the excluded zip codes has “plummeted,” the case contends. Amazon Prime members in these areas—who, like all subscribers, pay $139 per year or $14.99 per month for the promise of two-day, one-day or same-day delivery—have collectively paid “millions of dollars for a service they do not receive,” the filing alleges.

“The adverse impact of Amazon’s secret exclusion on residents in the excluded zip codes has been striking,” the lawsuit asserts. “In 2023, even though the rest of the country’s Prime members received their packages within two days of checkout 75% of the time nationwide, subscribers in the excluded zip codes, in the District of Columbia where [the plaintiffs] reside, received their packages within two days of checkout only 24% of the time.”

Indeed, the nearly 50,000 Amazon Prime members living in zip codes 20019 and 20020 “consistently experience the slowest shipping speeds in the D.C. area, despite paying the same premium for Prime membership that all other D.C. residents pay,” the class action suit describes.

As the case tells it, Amazon does not adequately disclose to new Prime enrollees that two-day, one-day or same-day delivery—the service’s “hallmark benefit”—is subject to any shipping exclusion or limitation for accountholders living in certain zip codes. For example, the terms and conditions of membership only state that “Prime shipping benefits depend upon … in some cases the shipping address,” the complaint shares.

Moreover, the filing alleges that Amazon has never informed residents of excluded zip codes of its choice to bar them from its in-house delivery systems.

“Instead, when some affected consumers have complained to Amazon that the delivery speeds they receive seem to be worse than surrounding areas, Amazon has concealed its delivery exclusion and deceptively implied that delivery delays were simply due to natural fluctuations in shipping circumstances, rather than an affirmative decision by Amazon,” the lawsuit contends.

The suit claims that Amazon has misled consumers living in the excluded zip codes and denied them the chance to make informed decisions about whether to enroll in or renew their Prime membership.

“In addition, were Amazon upfront about its exclusion practice, Prime members in the excluded zip codes could explore other options for meeting their basic needs,” the case says. “This is particularly important for consumers in historically underserved areas of the country, who time and again receive poorer service based on where they live.”

The lawsuit looks to represent anyone in the United States residing in any of Amazon’s excluded zip codes who paid for a Prime membership.

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