Home Strategy Business Amazon To Pay $61.7 Million To Settle Charges It Stole Driver Tips

Amazon To Pay $61.7 Million To Settle Charges It Stole Driver Tips


WASHINGTON (Reuters) — Amazon.com Inc agreed to pay more than $61.7 million to settle allegations it cheated Amazon Flex drivers out of nearly one-third of tips from customers for more than two years, the Federal Trade Commission said on Tuesday.

The money paid to the FTC will be used to compensate drivers, the agency said.

The FTC said Amazon in 2015 advertised that a program called Flex would pay drivers $18 to $25 an hour to make deliveries and that they would receive 100% of any tips. But in late 2016 Amazon “secretly reduced its own contribution to drivers’ pay,” according to the FTC complaint.

“Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate,” the FTC said in a statement.

The FTC said Amazon dropped the controversial payment model in August 2019 after the agency opened an investigation.

Amazon said it disagreed that the way it reported pay to drivers was unclear.

“In total, Amazon stole nearly one-third of drivers’ tips to pad its own bottom line,” Commissioner Rohit Chopra, a Democrat, said in a statement.

He urged the FTC to examine whether workers need to be protected from “other dominant middlemen.”

(Reporting by Diane Bartz, Editing by Marguerita Choy and Richard Chang)



Source link

Must Read

A Thousand Coal Miners Are Still On Strike After 4 Months

Michael Argo has spent 13 years working underground at a coal mine in Brookwood, Alabama, just outside Tuscaloosa. It’s the same mine his...

Worker Pay Rises As Employers Fight To Fill Open Jobs

WASHINGTON (AP) — Wages and salaries rose at a healthy pace in the three months ended in June as employers competed to find...

Global Law and Business Podcast – Chris Campbell (Tales of the Tribunal Podcast)

Listen HERE or stream on Spotify, Apple Podcasts, Amazon Music, Stitcher, or Soundcloud! At Harris Bricken, we keep close tabs on what is happening around the world, and we know that...

Proving What a China Copyright Registration Covers

Registering your copyrights in China is an essential part of any IP protection plan. But...

Google Says Its 140,000 Employees Must Be Vaccinated To Return To The Office

In one of the biggest announcements of its kind, Google told its 140,000-plus employees Wednesday that they must be vaccinated against COVID-19 to...