Today , the Federal Trade Commissionannouncedit ’s settle charges it levied against Amazon alleging the company had skimmed $ 61.7 million in steer from its contractile organ delivery drivers . The mulct , fitly , is for the full amount and “ will be used by the FTC to compensate driver . ” You love to see it .
As a refresher course , Amazon Flex launched back in 2015 . The draw play was that Flex driver could use their own vehicle to deliver production regularize from various services , including Amazon Fresh and Prime Now , while earning an advertised pace of $ 18-$25 per hr . For sure deliveries , customers could also tap their driver . From the get - go , Amazon promised both customers and number one wood that 100 % of the pourboire would go to drivers .
https://gizmodo.com/amazons-last-mile-1820451224
An Amazon Flex driver loads their car with packages outside an Amazon Fulfillment Center.Photo: Chip Somodevilla (Getty Images)
In realism , start in late 2016 , the FTC alleges that Amazon stir Flex drivers to a low-pitched hourly charge per unit and then used customer backsheesh to make up the difference . This would ’ve been one matter if Amazon had then discover the alteration to the drivers and customer . But , agree to the FTC , Amazon not only failed to send word drivers , it intentionally demand footstep to shroud the change from number one wood themselves while promising everyone that yes , drivers were still receiving 100 % of the tips .
In the FTC ’s initialcomplaint , it take note that Amazon employees were aware this was a prodigious mistake , internally characterizing the move as an “ Amazon reputation tinderbox ” and a “ Brobdingnagian public relations peril . ” Nothing exchange until August 2019 , when the FTC allege Amazon became cognizant of its investigation . Given that DoorDash was alsoembroiled in a tip - rake dirt , it ’s possible that Amazon thought it was a near idea to go back to the old manakin , where driver were ante up what they were foretell . At that time , Amazonconfirmed to Gizmodothat it would no longer use client tips to blow up out salary and change the Flex app to include a dislocation of remuneration for drivers .
In total , Amazon will have to cough up $ 61,710,583 which the FTC enjoin is the full amount that it think Amazon slip from equipment driver . As for where that money is work , the FTC pronounce it ’ll be used to refund Flex number one wood . ( Drivers can sign up for email update on the refund processhere . ) On top of repaying drivers , the FTC says Amazon will be stop from misrepresenting driver ’ wages , i.e. what the expect salary will be , how much of ordination gratuity they ’re entitled to , and what lot of a customer ’s payment is derived from a peak . The company is also disallow from using tips to pad wages unless it first informs drivers of the change and get their consent .
Well , just goes to show : Do n’t steal tips . Also , do n’t rest about steal point . Just do n’t be a peter , in general . But , this being Amazon , I ’m sure this alas is n’t thelastlaborviolationwe’ll hear about .
Update , 2025-04-18 , 5:55pm : After initial publication , an Amazon spokesperson provide Gizmodo the undermentioned statement :
“ While we disagree that the historical elbow room we reported pay to drivers was undecipherable , we add additional lucidness in 2019 and are pleased to put this topic behind us . Amazon Flex delivery married person play an of import role in do customer every day , which is why they earn among the best in the industry at over $ 25 per hour on average . ”
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