BELOW SUPERNAV drop zone ⇩

FTC: Amazon took $62 million in tips from drivers

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

maylen

https://digital-stage.newsnationnow.com/

AUTO TEST CUSTOM HTML 20241114185800

AUTO TEST CUSTOM HTML 20241115200405

AUTO TEST CUSTOM HTML 20241118165728

AUTO TEST CUSTOM HTML 20241118184948

NEW YORK (AP) — Amazon is paying nearly $62 million to settle charges that it took tips from its delivery drivers.

The Federal Trade Commission said Tuesday that Amazon didn’t pass on tips to drivers for more than two years, even though it promised shoppers and drivers it would do so. The FTC said Amazon didn’t stop taking the tips until 2019, when the company found out about the FTC’s investigation.

“This theft did not go unnoticed by Amazon’s drivers, many of whom expressed anger and confusion to the company,” said FTC Commissioner Rohit Chopra in a statement. “But, rather than coming clean, Amazon took elaborate steps to mislead its drivers and conceal its theft, sending them canned responses that repeated the company’s lies.”

The drivers were part of Amazon’s Flex business, which was founded in 2015 and allows people to deliver Amazon packages with their own cars. The drivers are independent workers, and are not Amazon employees.

The FTC said Amazon at first promised workers that they would be paid $18 to $25 per hour. It also told them they would receive 100% of tips given to them by customers on the app.

But in 2016, Amazon started paying drivers a lower hourly rate and used the tips to make up the difference, according to the complaint. Amazon didn’t disclose the change to drivers, the FTC said, and the tips it took from drivers amounted to $61.7 million.

Seattle-based Amazon.com Inc. said in a statement that the way it reported pay to workers was clear. But the company said it “added additional clarity in 2019″ and is “pleased to put this matter behind us.”

The FTC said the money Amazon is paying for the settlement will go back to delivery drivers whose tips were taken.

Business

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

AUTO TEST CUSTOM HTML 20241119133138

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Sunny

la

51°F Sunny Feels like 51°
Wind
2 mph E
Humidity
49%
Sunrise
Sunset

Tonight

Partly cloudy skies. Low 47F. Winds light and variable.
47°F Partly cloudy skies. Low 47F. Winds light and variable.
Wind
2 mph NNE
Precip
7%
Sunset
Moon Phase
Waning Gibbous