Amazon Settles D.C. Delivery Suit and Expands FTC Payouts
Amazon began expanded Prime settlement payouts to millions of U.S. customers and settled a separate lawsuit over delivery speeds in low-income Washington, D.C. neighborhoods.
Amazon Inc. began distributing expanded settlement payments to millions of U.S. Prime customers on October 1, 2026. The payouts stem from a $2.5 billion settlement with the Federal Trade Commission regarding allegations that the company enrolled users in Prime without consent and obstructed the cancellation process. Under a revised court order, eligibility now extends to customers who used between 11 and 20 Prime benefits in a year, with maximum potential payments increasing from $51 to $200. While the current phase is capped at $51, supplemental payments may be issued by April 2027. As of September 2026, the company has already issued over $845 million in refunds.
Simultaneously, the company settled a lawsuit with the District of Columbia on October 2, 2026, concerning allegations that it secretly slowed deliveries to low-income neighborhoods in Wards 7 and 8. Attorney General Brian Schwalb alleged that Amazon excluded ZIP codes 20019 and 20020 from its in-house delivery network starting in 2022, forcing approximately 69,000 Prime members to use slower third-party carriers.
To resolve the D.C. matter, Amazon will pay $8.25 million, including $7.25 million in customer refunds and a $1 million penalty. The company denied any deception, stating operational changes were driven by safety threats to drivers, and noted the settlement is not an admission of wrongdoing.
