Amazon to settle the petition claims to have stolen drivers' tips to save on labor costs


DC Prosecutor Brian El Schlelee announced on Friday that Amazon has agreed to pay $ 3.95 million to settle a case where he is accused of subsidizing his work costs.

According to Schlele, Amazon misleaded consumers in Washington DC between 2016 and 2019, assuring all the things they provide. Amazon flex driversEmployees who deliver packages with their cars.

Schlele's office claimed that by diverting millions of dollars in the guidance, Amazon was able to save its operating costs and thus increase profits.

“When companies are stealing the tips for their workers, they mislead customers to increase their profits, they cheat their consumers, employees and their competitors who play according to the rules. To. ”

Amazon complained about the robbery of more than $ 1 million in the tips of the delivery workers

A Flex Amazon driver loads his personal vehicle with packages

A Flex Amazon driver loads his personal vehicle with packages. (Chip somodevilla / getty images)

In a statement to Fox News Digital, Amazon told Fox News that the company opposes the allegations, noting that Amazon Flex has evolved since then.

Amazon spokesman Steve Kelly said: “For nearly a decade, Amazon Flex has strengthened the delivery partners to earn more in their plans.” “Like any successful program, Amazon Flex has evolved over time, and the petition is related to the action we changed more than five years ago. While we continue to oppose these claims, we are happy to go through So that we can continue to support the delivery partners and customers.

140,000 Amazon Driver $ 60 Million In the said points are refunded

Flex workers load vehicles by ordering at Amazon Delivery Station

Flex workers load vehicles by order at the Amazon Delivery Station. (Katie Tran / Bloomberg / Giti Pictures)

When Amazon Flex was launched in 2015, consumers were able to hit their delivery drivers while paying, which stated that 100 % of the tips would go to drivers.

The petition claimed that the Amazon had changed its driver's payment model the following year and instead of allowing the driver's compensation, the company had previously promised to pay the drivers to cover the wage of Amazon employees.

According to the Federal Commerce Commission, the payment model has not been disclosed for drivers or consumers and allows the model to continue its tips by 2019 when Amazon was “aware of FTC research in 2019.”

The company was accused of stealing more than $ 1 million in tips to fund its work.

Amazon packages available in the forest area

Amazon packages are placed in the delivery bags. (Lake Police Department)

According to a spokesman for Amazon at the time, as part of the FTC settlement in 2021, all the customer's points were paid to the drivers.

Past the settlement only with the FTC, the Office of the Attorney General The petition filed For relief and civil punishment, given that additional penalties are necessary to deny illegal behavior.

“After being caught, it is not enough to simply back up bad achievements,” Schlele said. “Instead, there must be significant consequences to prevent misconduct in the first place. Especially when living costs are more difficult and harder to cost, my office will continue to assure the residents of the hard -working area of ​​any coin from Get their income and consumers are confident.

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According to this settlement, Amazon has rejected all claims and claims.

“Amazon said that these truthful, complete, unambiguous, and accurate exhibitions have made customers on drivers' tips,” the town said.

Under the settlement conditions, Amazon will pay $ 3.95 million, including $ 2.45 million penalties and $ 1.5 million.

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The company has also agreed to maintain transparent and transparent practices.

“If Amazon uses tips for any other purpose other than increased driver compensation, the company must have a clear disclosure of how to use tips on the website and its program,” the settlement said.

Daniella Genovese Fox News has been involved in this report.



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