NEW YORK – Amazon is paying nearly $62 million to settle charges that it took tips from its delivery drivers. The Federal Trade Commission said Tuesday that for more than two years, Amazon didn’t pass on tips to drivers, even though it promised shoppers and drivers it would do so.
“Rather than passing along 100% 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. “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.”
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The FTC said Amazon didn’t stop taking the money until 2019, when the company found out about the FTC’s investigation. Seattle-based Amazon.com Inc. did not immediately respond to a request for comment Tuesday.
The online shopping giant will pay $61.7 million to settle the charges, which the FTC said will go back to drivers.
You can read more about the settlement here.