That's not what the ban was about. His account was banned because they wanted to protect their drivers from future racist encounters.
Obviously, they should be very sure that something actually happened, before taking such a drastic measure. The minimum would be to at least hear both sides.
What happens if an Amazon driver encounters someone else at your property or scans your item at the wrong address? What happens when you have no counter evidence or simply get stone walled by their CS?
The EULA/T&C likely “allow” Amazon to do this however the FCC and other regulatory bodies should start regulating the market to prevent stuff like this from happening.
Amazon seems to also be interested in getting into healthcare, insurance and banking sectors should they be able to completely blacklist someone and deny them access to prescriptions or their bank accounts even if they were racist assholes?
This attitude is the reason why this keeps happening. I don't agree that it's Amazon's job to police how I use my own device.