The FTC is making Amazon pay for basically lying to their drivers.
From 2016 to 20109, Amazon told drivers they would be able to keep 100% of their tips received from Amazon customers. Here’s the problem; Amazon kept all that tip money for themselves. So the Federal Trade Commission sued the online retailer, and now roughly 140,000 drivers will split about $61.7 million.
Here’s part of the statement.
“Amazon will pay more than $61.7 million to settle Federal Trade Commission charges that it failed to pay Amazon Flex drivers the full amount of tips they received from Amazon customers over a two and a half year period. The FTC’s complaint alleges that the company stopped its behavior only after becoming aware of the FTC’s investigation in 2019.”
This all stems from the ads Amazon ran that said they drivers in their Flex delivery program would make $18-$25 per hour and keep 100% of their tips.
Here’s more from the FTC. “Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself. 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.”
The evidence was pretty one-sided in this case, so Amazon agreed to settle and pay the drivers their millions.