Monday, July 22, 2024

FTC fines Amazon $ 61.7 million for denying tips to flex drivers

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Amazon will pay a fine of $ 61.7 million to settle allegations that the company improperly tipped its Flex delivery drivers, the Federal Trade Commission (FTC). announced Tuesday. The fine stems from a payment change the company implemented in late 2016. At the time, Amazon said Flex Drivers, who use their own cars to deliver parcels and groceries for Prime Now and Whole Foods, could earn $ 18 to $ 25 an hour, plus tips for their work. That same year, he implemented a new payment policy, which the FTC says Amazon failed to properly disclose to drivers, which saw him pay Flex drivers a lower hourly rate. Over a two-and-a-half-year period, he used the tips he earned to make up the difference between the rate he promised and the rate he was actually paying.

According to the agency, not only did Amazon “intentionally” fail to notify drivers of its policy changes, but it actively took steps to obscure them as well and used tips earned by drivers. The whole time he continued to advertise, Flex drivers could earn tips and $ 18 to $ 25 an hour. The company only reverted to the previous payment model after learning about the FTC’s investigation in 2019.

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