Washington DC AG sues Amazon over driver tips


FILE PHOTO: The logo of Amazon is seen at the company's logistics center in Bretigny-sur-Orge, near Paris, France, November 25, 2022. REUTERS/Benoit Tessier

WASHINGTON (Reuters) - The District of Columbia attorney general's office filed suit Wednesday against Amazon.com Inc alleging it previously withheld tips from delivery drivers.

Attorney General Karl Racine said Amazon "tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits" through its Amazon Flex service.

Last year under a settlement with the U.S. Federal Trade Commission, Amazon paid $61.7 million to more than 140,000 drivers. Racine said Amazon has "thus far escaped appropriate accountability, including any civil penalties, for consumer harm."

(Reporting by David Shepardson)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Tech News

‘They fire, we hire’: Germany seizes on Silicon Valley’s woes
U.S. FAA adopts new safeguards after computer outage halted flights
Facebook seeks to block $3.7 billion UK mass action over market dominance
Mastercard, Binance launching prepaid card in Brazil
Britain's JD Sports says customer data accessed by cyber attack
TikTok's CEO to testify before Congress in March
JD.com to shut Indonesia, Thailand shopping sites in focus shift
Nigerian artist uses AI to re-imagine life for the elderly
Food blogger in China who cooked and ate great white shark is fined US$18,500
Can the UK Online Safety Bill take on misogyny?

Others Also Read