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Amazon agreed to pay $ 3.95 million to resolve a lawsuit in which he was accused of subsidizing his labor costs by stealing the advice that his drivers received to cover part of the employee’s base salaries, the attorney general of DC Brian L announced on Friday. Schwalb.
According to Schwalb, Amazon cheated consumers in Washington, DC, between 2016 and 2019 by ensuring that all the advice they provided would go Flexible Amazon controllersEmployees who deliver packages with their own cars.
The Schwalb office claimed that by diverting millions of dollars in tips, Amazon was able to save in its own operational costs and, therefore, increase the profits.
“When companies deceive customers to increase their profits by stealing advice for their workers, they are deceiving their consumers, their employees and their competitors who play with the rules,” said Schwalb.
Amazon suedly steal more than $ 1 million on delivery workers councils
A Amazon Flex driver cargo your personal vehicle with packages. (Somodevilla / Getty images)
Amazon said in a statement to Fox News Digital that the company does not agree with the accusations, noting that Amazon Flex has evolved since then.
“For almost a decade, Amazon Flex has trained delivery partners to earn extra money at their own schedules,” said Amazon spokesman Steve Kelly. “Like any successful program, Amazon Flex has evolved over time, and this demand is related to a practice that we changed more than five years ago. While we continue to disagree with these accusations, we are happy to have the matter behind us to that we can continue to focus on supporting the delivery partners and customers.“
140,000 Amazon drivers will recover $ 60 million in supposedly retained tips
Flexible workers carry vehicles with orders at a Amazon delivery station. (Kathy Tran / Bloomberg / Getty Images)
When Amazon Flex launched in 2015, consumers were able to tip their delivery drivers at the end of the purchase, which declared that 100% of the tips would go to the drivers.
The demand said that Amazon changed its driver’s payment model the following year, and that instead of allowing the tips to increase the total compensation of the driver, the company used it to cover the base salaries of the employees that Amazon had already promised to pay to drivers.
According to the Federal Commerce Commission, the change of the payment model was not disclosed to drivers or consumers, allowing the model to continue taking advice until 2019, when Amazon realized the FTC investigation in 2019 “.
The company was accused of stealing more than $ 1 million on advice to cover its labor expenses.
Amazon packages are found in delivery bags. (Lakeville Police Department)
As part of an agreement with the FTC in 2021, all customer councils in question were finally paid to drivers, according to a Amazon spokesman at that time.
In addition to the restitution agreement only with the FTC, the Office of the Attorney General filed a lawsuit For a precautionary relief and civil sanctions, noting that additional sanctions were justified to discourage illegal behavior.
“It is not enough, after being caught, simply returning the battered profits,” Schwalb said. “Rather, there must be significant consequences to dissuade the misconduct that will happen first. Especially when life expenses are increasing profits and consumers have confidence that they are not being deceived. “
| Heart | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | Amazon.com inc. | 229.15 | -9.68 | -4.05% |
According to the agreement, Amazon has denied all accusations and claims.
“Amazon argues that he made sincere, complete, unequivocal and precise representations for customers regarding the councils for drivers,” the agreement said.
According to the liquidation terms, Amazon will pay $ 3.95 million, including $ 2.45 million in fines and $ 1.5 million in costs.
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The company also agreed to maintain transparent inflection practices.
“If Amazon uses tips for any purpose that is not to increase driver compensation, the company must make clear revelations about how the tips are used both on its website and in its application,” the agreement said.
Daniella Genovese de Fox News contributed to this report.
