Internet giant Amazon is forking over nearly $62 million in order to settle a complaint from the Federal Trade Commission that it did not pay drivers over two and a hanlf years.
The FTC announced the settlement Tuesday.
“Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection. “Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers’ permission before changing its treatment of tips in the future.”
Drivers affected were those in the Amazon Flex who “agree to make deliveries using their personal vehicles. Flex drivers deliver goods and groceries ordered through the Prime Now and AmazonFresh programs, which allow customers to give the drivers a tip,” the FTC said.
“The $61.7 million represents the full amount that Amazon allegedly withheld from drivers and will be used by the FTC to compensate drivers,” the FTC said.
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According to the FTC, it alleges “the company stopped its behavior only after becoming aware of the FTC’s investigation in 2019.”
The $61.7 million represents the full amount that Amazon allegedly withheld from drivers and will be used by the FTC to compensate drivers.
Amazon and its subsidiary, Amazon Logistics, “regularly advertised that drivers participating in the Flex program would be paid $18–25 per hour for their work making deliveries to customers. The ads, along with numerous other documents provided to Flex drivers, also prominently featured statements such as: ‘You will receive 100% of the tips you earn while delivering with Amazon Flex,'” the FTC said.
“Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection. “Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers’ permission before changing its treatment of tips in the future.”
