Washington D.C. Attorney General Karl Racine has announced a lawsuit against Amazon for allegedly deceiving customers and stealing tips from delivery drivers.
“Consumers need to know where their tips are going. This suit is about providing workers the tips they are owed and telling consumers the truth.”
– Karl Racine, Washington D.C. Attorney General, December 7, 2022
In 2015, Amazon Flex allowed ordinary people to become delivery drivers using their own vehicle and earn $18-25 an hour, plus 100% of tips.
In 2016, the company switched to a variable-pay system that skimmed drivers’ tips. If a customer tipped $6, Amazon would instead pay the driver $12, for a total of $18.
In February 2021, Amazon was ordered by the Federal Trade Commission to reimburse $61.7 million to drivers deprived of tips between 2016 and 2019.
Racine’s complaint filed in D.C. superior court claim that Amazon “escaped appropriate accountability, including any civil penalties, for consumer harm”.
