FTC fines Amazon $ 61.7 million for omitting tips from Flex drivers

Amazon will pay a $ 61.7 million fine to resolve allegations that the company did not tip Flex delivery drivers, the Federal Trade Commission (FTC) announced on Tuesday. The fine stems from a payment change the company implemented in late 2016. At the time, Amazon said that Flex drivers, who use their own cars to deliver packages and groceries to Prime Now and Whole Foods, could earn $ 18 to $ 25 an hour, plus tips for your work. In the same year, it put in place a new payment policy, which the FTC says Amazon did not adequately disclose to drivers, which saw it pay Flex drivers a lower hourly rate. Over a period of two and a half years, she used the tips she earned to make up for the difference between the fee she had promised and the fee she was actually paying.

According to the agency, Amazon not only failed “intentionally” to notify drivers of their policy changes, but also took steps to hide them and used the tips that drivers won. All the while, it also continued to announce that Flex drivers could earn tips and $ 18 to $ 25 an hour. The company only reverted to the previous payment model after learning about the 2019 FTC investigation.

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