Amazon will pay $61.7 million to settle claims it withheld tips from delivery workers

Jeff Bezos, the founder of Amazon, stepped down from his CEO position, shortly before the United States Federal Trade Commission announced that it was fining Amazon $61.7m, so the company could settle charges that it withheld delivery drivers’ tips paid by customers. 

The full announcement from the FTC is astounding. It states that Amazon regularly advertised that drivers participating in the Flex program would be paid between $18 and $25 per hour, and that drivers would receive all of their tips. That is not what happened.

Instead, the FTC alleges that Amazon put its workers on a lower rate and used customer tips to make up the difference. Amazon allegedly took steps to mislead drivers about this, made the change, and then lied about it. 

“Rather than passing along 100 per cent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, acting director of the FTC’s Bureau of Consumer Protection.

The FTC also alleges that Amazon only stopped its behaviour, which happened over a two and a half year period, when it became aware of the investigation.

Since Amazon knew when the FTC will release their verdict, it purposely released the news of Amazon CEO Jeff Bezos stepping down, avoiding a PR storm of reputation damaging headlines. Suddenly everyone has a new story and the shocking news of this major scandal just don’t make it to the headlines.

Here is the entire shocking Statement of Commissioner Rohit Chopra:

Here you can view the full press release by FTC:

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