FTC says Amazon took $62 million in tips from drivers

NEW YORK – Amazon is paying nearly $62 million to settle charges that it took tips from its delivery drivers.

“This theft did not go unnoticed by Amazon’s drivers, many of whom expressed anger and confusion to the company,” FTC Commissioner Rohit Chopra said in a statement.

The drivers were part of Amazon’s Flex business, which was founded in 2015 and allows people to deliver Amazon packages with their own cars. The drivers are independent workers, and are not Amazon employees.

The FTC said Amazon at first promised workers that they would be paid $18 to $25 per hour. It also told them they would receive 100% of tips given to them by customers on the app.

But in 2016, Amazon started paying drivers a lower hourly rate and used the tips to make up the difference, the complaint said. Amazon didn’t disclose the change to drivers, according to the FTC, and the tips it took from drivers amounted to $61.7 million.

Seattle-based Amazon.com Inc. said in a statement that the way it reported pay to workers was clear. But the company said it “added additional clarity in 2019” and is “pleased to put this matter behind us.”

The FTC said the money Amazon is paying for the settlement will go back to the delivery drivers.