Amazon settles lawsuits claiming they stole driver tips to save on labor costs
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Amazon has put $3.95 million to resolve a lawsuit accused of subsidizing labor costs by stealing tips received by drivers to cover a portion of employee base wages. We agreed to pay, DC Attorney Brian L. Schwalb announced on Friday.
According to Schwalb, Amazon misinterpreted Washington, DC consumers between 2016 and 2019 by ensuring that all the tips they provided go Amazon Flex Driveremployees delivering packages in their own car.
Schwarb’s office argued that by diverting its millions of dollars in tips, Amazon could save its own operating costs and thus increase its profits.
“Companies are misleading customers to steal tips for workers and make profits, cheating on consumers, employees and competitors who play on rules,” Schwarb said.
Amazon accused of being allegedly stole more than $1 million in tips from delivery workers
Amazon Flex drivers load packages into personal vehicles. (Chip Somodevilla/Getty Images)
In a statement to Fox News Digital, Amazon said it disagreed with the allegations, saying that Amazon Flex has evolved since.
“For almost ten years, Amazon Flex has been able to make extra money from its delivery partners on their schedules,” said Amazon spokesperson Steve Kelly. “Like a successful program, Amazon Flex has evolved over time, and this lawsuit is linked to practices that have been changed over five years ago. While continuing to oppose these allegations, I have been working on it. We are delighted to have the problem behind us. Please continue to focus on supporting our shipping partners and customers.“
140,000 Amazon drivers will regain $60 million with withholding tips
Flexworkers are equipped with orders at Amazon delivery stations. (Caset Run/Bloomberg/Getty Images)
When Amazon Flex was launched in 2015, consumers were able to tilt their delivery drivers at check-out. This said 100% of the hints will be sent to the driver.
The lawsuit states that, instead of Amazon changing its driver payment model the following year and allowing tips to increase drivers’ total compensation, the company cites the base wages of employees that Amazon had already committed to paying drivers. They claimed they used it to cover it.
According to the Federal Trade Commission, changes to payment models have not been disclosed to drivers or consumers, and the model can continue to take tips until 2019 when Amazon “recognized the FTC survey in 2019.” Masu.
The company was accused of stealing more than $1 million in tips to cover labor costs.
Amazon packages are available in the delivery bag. (Lakeville Police Station)
As part of the 2021 settlement with the FTC, Amazon spokesman at the time said all customer tips in question were ultimately paid to the driver.
Aside from a settlement with the FTC only, the Attorney General’s Office He filed a lawsuit Please note that additional penalties have been guaranteed to block illegal activities due to injunctive relief and civil penalties.
“It’s not enough to simply return malicious benefits after being captured,” Schwarb said. “In fact, there must be meaningful consequences to prevent fraud from occurring in the first place. Especially when the cost of living is more difficult and difficult, my office is a hard-working district residents who are earning every penny of revenue, especially when living costs are more difficult and difficult. We will continue to guarantee that we will receive and that our consumers are confident. They are not misunderstood.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| amzn | Amazon.com Inc. | 229.15 | -9.68 |
-4.05% |
According to the settlement, Amazon has denied all claims and claims.
“Amazon claims to have created a customer honest, complete, clear and accurate statement regarding driver tips,” the settlement states.
According to the terms of the settlement, Amazon will pay $3.95 million, including a $2.45 million fine and a $1.5 million cost.
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The company has also agreed to maintain transparent transformation practices.
“If Amazon uses hints for purposes other than increasing driver coverage, the company needs to make clear disclosures about how the hints are used on both the website and the app.” The settlement states.
Daniella Genovese of Fox News contributed to this report.