Page 55 - Amazon Flex News Today

The e-commerce giant capped off its pandemic-fueled 2020 financial performance with record quarterly sales driven by a surge in year-end online shopping.

SEATTLE (dpa-AFX) - Amazon will pay over $61.7 million to Flex drivers to settle Federal Trade Commission charges that the online retail giant stole tips that its customers gave to the drivers.FTC

On Tuesday, the US Federal Trade Commission (FTC) said the settlement figure represents how much drivers allegedly lost in tips over a two-and-a-half-year period.  Amazon Flex is an offshoot of the companys standard delivery infrastructure. Under Flex, drivers can sign up and use their own vehicles to deliver packages on behalf of the company, and customers are able to tip their drivers if they wish.  According to the US watchdog, Amazon misrepresented the job by telling drivers they would r...

FTC says Amazon took $62 million in tips from drivers, will be paying them back Steven Senne/AP FILE - In this Oct. 1, 2020 file photo, an Amazon Prime logo appears on the side of a delivery van as it departs an Amazon Warehouse location in Dedham, Mass. Amazon is paying nearly $62 million to settle charges that it took tips from its delivery drivers. The Federal Trade Commission said Tuesday, Feb. 2, 2021, that for more than two years, Amazon didn’t pass on tips to drivers, even though it...

The U.S. Federal Trade Commission announced today that Amazon will be required to pay $61.7 million to settle charges that it withheld some customer tips from its Amazon Flex drivers over a two and a half year period. According to the complaint against Amazon and its subsidiary Amazon Logistics, the company had advertised that it paid 100% of tips to drivers. The FTC also alleged that Amazon didn't stop this behavior until it became aware of the FTC investigation in 2019.

protects the confidentiality of its sources. The complaint says that hundreds of drivers complained to Amazon about the pay discrepancies. A 2019 Los Angeles Times article described drivers, assigned by chance to deliver packages to their own homes, tipping themselves very specific figures to determine if the full tips were reaching their accounts. They werent. Meanwhile, according to the FTC, internal Amazon emails show employees describing the situation as “a huge PR risk for Amazon” and...

Amazon Flex allows drivers to make deliveries with their personal vehicles, and they are classified as personal contractors.  Amazon regularly advertised that drivers participating in the Flex program would be paid $18-25 per hour, according to the FTCs complaint. Some statements by Amazon included: “You will receive 100% of the tips you earn while delivering with Amazon Flex.” The FTC claimed Amazon began paying drivers lower hourly rates in 2016 and used the customer tips to make up ...

Amazon Kept $62 Million In Tips Intended For Drivers, FTC Says Amazon needs to pay back nearly $62 million in drivers tips that it skimmed over the years, federal regulators said Tuesday. The Federal Trade Commission unveiled a complaint against the ecommerce giant on Tuesday alleging that Amazons Flex program stole nearly $62 million in tips from its army of drivers between 2016 and 2019. "Rather than passing along 100 percent of customers tips to drivers, as it had promised to do, Amazon use...

Amazon Pocketed $62 Million in Delivery Drivers’ Tips, FTC Alleges A $61.7 million settlement will compensate gig workers whose tips were used to subsidize their hourly wages Share this story Amazon has agreed to pay more than $61.7 million to settle Federal Trade Commission (FTC) charges that the e-commerce giant skimmed off customer tips to subsidize delivery drivers’ hourly wages. “The FTC is sanctioning Amazon.com for expanding its business empire by cheating its workers,” FTC commi...

February 3, 2021 “If you do it right, a few years after a surprising invention, the new thing has become normal,” Jeff Bezos told Amazon employees this week in a memo announcing the end of his reign as CEO at the company where he has spent nearly three decades disrupting shopping habits. “People yawn,” he added. “That yawn is the greatest compliment an inventor can receive.” If only Bezos had tried to induce yawns not just as an inventor but also as an employer. He might have, for e...