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An Amazon spokesperson tells PEOPLE in a statement, “While we disagree that the historical way we reported pay to drivers was unclear, we added additional clarity in 2019 and are pleased to put this matter behind us.”
“Amazon Flex delivery partners play an important role in serving customers every day, which is why they earn among the best in the industry at over $25 per hour on average across the country,” the spokesperson added.
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According to theFTC’s administrative complaint, Amazon “regularly advertised” that drivers who participated in Amazon Flex would be paid $18-25 an hour, in addition to being able to keep 100% of any tips they earned.The FTC alleged that starting in late 2016, Amazon “shifted from paying drivers the promised rate of $18-25 per hour plus the full amount of customer tips topaying drivers a lower hourly rate,” the FTC said in a previous release.Instead, the company used customer tips “to make up the difference between the new lower hourly rate and the promised rate,” the FTC said.
In February, Amazonagreed to settle the casefor $61.7 million.“Rather than passing along 100 percent of customers' tips to drivers, as it had promised to do, Amazon used the money itself,” Daniel Kaufman, Acting Director of the FTC’s Bureau of Consumer Protection, said in a statement at the time. “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.“The settlement also prohibits Amazon from misrepresenting the amount of money drivers will likely be paid as well as making future changes about how tips are used without the consent of the drivers.
source: people.com
