Washington: Amazon has agreed to pay $61.7 million (Dh226 million) to settle charges it withheld tips from its independent delivery drivers over two-and-a-half years, US officials said Tuesday.
The US Federal Trade Commission said the agreement settles a complaint that Amazon failed to give the full tip amounts to drivers in its Amazon Flex programme. Rather than passing along 100 per cent 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.
Amazon to pay $61.7M after failing to pay full driver tips
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Feb. 2 (UPI) The Federal Trade Commission on Tuesday voted to approve an agreement in which Amazon will pay $61.7 million to settle allegations the online retailer failed to pay delivery drivers their full tips.
The FTC said the settlement represents the full amount the company allegedly withheld from Flex drivers, independent contractors who make Amazon deliveries using their personal vehicles.
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Under the terms of the settlement, the FTC said it will compensate the affected drivers using the $61.7 million paid by Amazon.
The Flex program allows customers to give tips, which Amazon said would be 100% passed on to the drivers.
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.
“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.
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Amazon Stiffs Drivers $62 Million in Tips
2 months ago
The Federal Trade Commission (FTC) has announced Amazon is settling to the tune of $61.7 million for tips it withheld from drivers.
As part fo the Amazon Flex program, drivers were promised $18–25 per hour for making deliveries. In addition, ads recruiting Flex drivers routinely said: “You will receive 100% of the tips you earn while delivering with Amazon Flex.”
Amazon also assured customers that any tips they gave would go straight to drivers. There’s only one problem: Amazon didn’t pay its drivers the tips from customers, pocketing nearly $62 million.
“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’ pe