Share Prices & Company Research

Market News

02 Feb 2021 | 17:58

Amazon reaches settlement with US FTC on tips for drivers

(Sharecast News) - US technology giant Amazon has reached a settlement with US regulators regarding charges that it failed to pay its Flex drivers the tips received from customer over the preceding two-and-a-half years. In its administrative complaint, the US Federal Trade Commission also alleged that Amazon had only stopped that practice when it became aware of its investigation.

Amazon will now reimburse the full $61.7m of the funds that it had withheld.

"Rather than passing along 100 percent of customers' tips to drivers, as it had promised to do, Amazon used the money itself," FTC Bureau of Consumer Protection, Daniel Kaufman, said.

"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."
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.