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What’s next?Īmazon will provide the FTC with information on which Amazon Flex drivers were impacted. Flex drivers are those who delivered goods like household and official essentials and groceries through Amazon’s Prime Now and Amazon Fresh programs. The FTC approved the final consent order in a vote of 4 to 0.Īmazon Flex drivers who drove for Amazon between late 2016 and August 2019 may have had their tips impacted and, if so, they are eligible for payment. Amazon must follow the final order for 20 years and will be liable for civil penalties of up to $43,792 per violation if they fail to meet its terms.Amazon is prohibited from changing how driver’s tips are used as compensation without first getting the driver’s express informed consent.Amazon will be prohibited from misrepresenting any driver’s income or rate of pay, how much of the tips they will receive, and whether payments include customer tips.Amazon must pay $61,710,583 to compensate drivers for tips withheld.The final administrative consent order approved by the FTC states that: “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.” Terms of settlement

“Rather than passing along 100 percent 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, in a Februnews release. As a result, hundreds of drivers complained. Instead, Amazon used the tips to subsidize drivers’ pay, effectively lowering their overall compensation.

Amazon has agreed to pay $61.7 million to settle the claim that alleges Amazon regularly advertised that Flex drivers would get paid $18 to $25 an hour for deliveries, plus tips for Prime Now and Amazon Fresh deliveries.Īmazon also told customers that 100% of their tips would go directly to drivers, but the company didn’t follow through on that promise.

Amazon has agreed to settle an administrative complaint brought by the Federal Trade Commission in February 2021, alleging the company failed to pay Amazon Flex drivers 100% of tips from customers over a two-and-a-half-year period.