Amazon to pay $8.25 million to settle DC lawsuit over Prime delivery practices – WTOP News
The agreement resolves claims that Amazon slowed Prime deliveries for about 69,000 customers while charging full membership fees.
- On Thursday, Amazon agreed to an $8.25 million settlement with the District of Columbia, comprising $7.25 million in customer refunds and a $1 million penalty to resolve a lawsuit over delivery service exclusions.
- Attorney General Brian Schwalb alleged that Amazon violated consumer protection laws by secretly excluding ZIP codes 20019 and 20020 east of the Anacostia River from in-house delivery services, affecting roughly 69,000 Prime members paying full subscription prices.
- Amazon spokesperson Steve Kelly rejected the deception claims, stating the company adjusted operations due to "documented safety threats" and emphasized the settlement is "in no way an admission of wrongdoing."
- Affected residents will receive $7.25 million in refunds for fees paid between June 2022 and April 2026, while Amazon must now notify customers of any future delivery service restrictions in those areas.
- Beyond the D.C. settlement, a separate $2.5 billion Federal Trade Commission agreement targets Amazon's billing and cancellation practices, as Chicago and New York City consider legislation requiring delivery companies to directly employ drivers.
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Amazon to pay $8.25 million to settle DC lawsuit over Prime delivery practices – WTOP News
Amazon.com will pay $8.25 million in refunds and penalties, including $7.25 million in refunds to customers and $1 million in penalties to the District. Amazon will also change its business practices after deceiving tens of thousands of D.C. residents.
The Independent
The Independent (US)Millions of Amazon Prime customers could start getting automatic refunds right now
Payments are part of a landmark $2.5 billion agreement resolving allegations that Amazon enrolled consumers in Prime without explicit consent
Amazon FTC settlement payouts: Who is eligible for up to $200 and when will the money arrive?
Automatic settlement payments for Amazon Prime customers will begin on October 1, 2026. Millions of additional customers will qualify under a revised agreement with the Federal Trade Commission. Eligible customers do not need to file a claim or complete any paperwork to receive payments. The maximum payment amount has increased from $51 to $200 in this updated settlement. Payments will be sent electronically or by mail, ensuring convenience for …
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