Washington Sues Amazon for Tips
2022.12.07 12:17
Washington Sues Amazon for Tips
Budrigannews.com – On Wednesday, the District of Columbia Attorney General filed a lawsuit against Amazon.com Inc. and its subsidiary, Amazon Logistics, claiming that the largest online retailer had withheld delivery drivers’ tips.
According to Washington Attorney General Karl Racine, Amazon Flex (NASDAQ:) “tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits.” service.
Deliveries made through Amazon Fresh and Prime Now are made by Amazon Flex drivers using their own vehicles. The FTC claimed the organization kept drivers’ spills a/long term period and halted the training subsequent to learning of the FTC examination in 2019, the FTC said in 2021.
The lawsuit, which was filed in the Superior Court for the District of Columbia, seeks civil penalties for each violation as well as an order from the court prohibiting Amazon from engaging in the practice once more.
Amazon paid over 140,000 drivers $61.7 million in a settlement with the U.S. Federal Trade Commission last year.
In a statement, Racine stated that Amazon had “thus far escaped appropriate accountability, including any civil penalties, for consumer harm.”
“When a business is discovered to be stealing from its employees, it is insufficient for the business to repay the stolen amount. Stealing from employees is theft, and severe penalties are required to strongly discourage this illegal behavior.”
Amazon did not respond immediately with a response.
In 2021, the business did not agree that the method it used to report pay to drivers was unclear. An Amazon spokesperson stated at the time, “We are pleased to put this matter behind us and added additional clarity in 2019.”
