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Amazon has agreed to pay $ 3.95 million to pay legal action in which he was accused of subsidizing his labor costs by stealing the advice received by his drivers to cover some of the basic wages of Employees, the DC prosecutor Brian L. Schwalb announced on Friday.
According to Schwalb, Amazon has misleaded consumers in Washington, DC, between 2016 and 2019, assuring them that all the advice they provided would go to Amazon flexible pilotsEmployees who deliver packages with their own cars.
The Schwalb office allegedly allegedly diverting millions of dollars from tips, Amazon was able to save on its own operating costs and therefore increase profits.
“When companies have misleaded customers to increase their profits by stealing advice for their workers, they deceive their consumers, employees and competitors who respect the rules,” said Schwalb.
Amazon continued for having pretended to stole more than $ 1 million in advice to delivery workers
An Amazon Flex driver loads his personal vehicle with packages. (SOMODEVILLA / GETTY Images)
Amazon declared in a press release to Fox News Digital that the company does not agree with the allegations, noting that Amazon Flex has evolved since then.
“For almost a decade, Amazon Flex allowed delivery partners to earn additional money in their own schedules,” said Amazon spokesperson Steve Kelly. “Like any successful program, Amazon Flex has evolved over time, and this trial concerns a practice that we have changed over five years ago. Although we continue to disagree with these allegations, we are happy to Have the question behind us so that we can continue to focus on supporting delivery partners and customers.“”
140,000 Amazon drivers will recover $ 60 million in allegedly retained advice
Flexible workers load vehicles with orders in an Amazon delivery station. (Kathy Tran / Bloomberg / Getty images)
When Amazon Flex was launched in 2015, consumers were able to tip their delivery drivers to the checkout, which indicates that 100% of the advice would go to drivers.
The trial said that Amazon changed its driver’s payment model the following year and that advice to increase the driver’s total remuneration, the company used it to cover the basic wages of Employees that Amazon had already promised to pay the drivers.
According to the Federal Trade Commission, the change of payment model has not been disclosed to drivers or consumers, allowing the model to continue taking advice until 2019, when Amazon became “aware of the survey of the FTC in 2019. “
The company was accused of having stolen more than a million dollars in advice to cover its labor costs.
The Amazon packages are seated in delivery bags. (Lakeville police department)
As part of a regulation with the FTC in 2021, all the advice of the customers in question were finally paid to the drivers, according to an Amazon spokesperson at that time.
Aside from the return regulations with the FTC, the prosecutor’s office general has filed a legal action For an injunction and civil sanctions, noting that additional sanctions were justified to disincitate illegal behavior.
“It is not enough, after being taken, to simply make the gains badly acquired,” said Schwalb. “On the contrary, there must be significant consequences to dissuade the unconsciousness from the first place. Especially when subsistence costs are more and more difficult to afford, my office will continue to ensure that the residents of the District work every penny of their earnings and that consumers have confidence that they are not misleading. “
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Amzn | Amazon.com inc. | 229.15 | -9.68 | -4.05% |
According to the regulations, Amazon denied all allegations and complaints.
“Amazon maintains that he has made truthful, complete, unambiguous and precise representations for customers concerning advice for drivers,” said the regulations.
Depending on the regulations, Amazon will pay $ 3.95 million, including $ 2.45 million in penalties and $ 1.5 million in costs.
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The company has also agreed to maintain transparent tilting practices.
“If Amazon uses advice for other purposes than the increase in driver’s remuneration, the company must make clear disclosure on how advice is used on its website and application,” said the regulation.
Daniella Genovese by Fox News contributed to this report.
