SEATTLE — 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 Amazon Flex drivers, even though it promised shoppers and drivers it would do so. The FTC said Amazon didn’t stop taking the money until 2019, when the company found out about the FTC’s investigation.
In the Amazon Flex program, drivers deliver packages from AmazonFresh and Prime Now in their own cars. Customers can tip these drivers.
According to the FTC complaint, Amazon advertised that it pays Flex drivers $18 to $25 per hour, and materials included statements that drivers can keep 100% of their tips. However, the FTC alleged that in 2016 Amazon changed its payment model of $18 to $25 per hour plus tips to a lower hourly rate, using tips to make up the difference. The FTC claimed Amazon didn’t disclose this pay change to drivers.
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.
The agreement also requires Amazon receive drivers’ permission before changing its tips policy in the future, according to the FTC.
