Amazon has agreed to pay nearly $4 million to settle charges that it subsidized its labor costs by taking tips intended for drivers. The Federal Trade Commission (FTC) and the District of Columbia alleged that Amazon changed its payment model in 2016 to lower its costs but did not disclose the change to customers or drivers. Amazon has denied the allegations and did not admit to wrongdoing as part of the settlement.
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But both the District and the FTC alleged that Amazon changed its payment model in late 2016 to lower its costs but did not disclose the switch to either customers or drivers. The FTC said Amazon didn’t stop taking the tips until 2019, when the company found out about the agency's investigation into the issue.
“Like any successful program, Amazon Flex has evolved over time, and this lawsuit relates to a practice we changed more than five years ago,” Amazon spokesperson Steve Kelly said in a statement.
AMAZON TIPS DRIVERS FTC SETTLEMENT
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