Amazon to pay over $8 million after D.C. ZIP exclusions
Amazon just agreed to pay over $8 million to settle a lawsuit with Washington, D.C.
The case claimed Amazon left two ZIP codes covering historically lower-income sections of the city out of its Prime fast-shipping service, affecting about 69,000 local Amazon Prime members who weren't told they'd get slower deliveries.
This was seen as breaking consumer protection laws.
Amazon settlement includes $7.25 million and $1 million
Amazon will reimburse $7.25 million to impacted Prime members and pay a $1 million civil penalty.
The company also promised to be upfront with local customers about any future changes in delivery service.
While Amazon hasn't admitted any wrongdoing, their spokesperson said they want to avoid a long legal fight and focus on serving customers better.
As Attorney General Schwalb put it, "Amazon deceived thousands of its customers. Now, we're putting more than $7 million back in the pockets of people who were taken advantage of," highlighting ongoing concerns about fairness in big tech's services.