Amazon to pay $61.7M to settle charges it stole driver tips
The money will be used to compensate drivers
Amazon.com Inc has agreed to pay more than $61.7 million to settle allegations that it failed to pay Amazon Flex drivers all of the tips given by customers over more than two years, the Federal Trade Commission said in a statement on Tuesday.
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The money paid to the FTC will be used to compensate drivers, the FTC said.
Amazon did not immediately respond to a request for comment.
The FTC said that the company advertised that drivers in a program called Flex would be paid $18 to $25 an hour to make deliveries and would receive 100% of any tips.
The FTC says, however, that in late 2016 that Amazon began giving the drivers less per hour but did not tell them.
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“Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate,” the FTC said in a statement.
