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Amazon to settle the lawsuit, which claims to stole drivers’ advice to provide employment costs

Amazon agreed to pay $ 3.95 million to settle a lawsuit accused of supporting employment costs by stealing the advice that her drivers received to cover part of the employee wages.

According to Schwalb, Amazon misled consumers in Washington, DC, between 2016 and 2019 by assuring them that all the advice they provided will go to Amazon Flex operating programsEmployees who provide packages with their own cars.

Shawwal’s office claimed that by transferring millions of dollars from advice, Amazon was able to save its operating costs and thus increase profits.

“When companies mislead customers to enhance their profits by stealing advice for their workers, they are betraying their consumers, employees and competitors who play with rules,” said Shawwalb.

A lawsuit was filed against Amazon, claiming that more than a million dollars were stolen in advice from delivery workers

Amazon Flex driver downloads its personal car firmly. (Chip Somodevilla / Getty Images)

Amazon said in a statement to Fox News Digital that the company does not agree to these allegations, noting that Amazon Flex has evolved since then.

“For nearly a decade, Amazon Flex enabled the delivery partners to earn additional money on their own schedules,” said the Amazon spokesman Steve Kelly. “Like any successful program, Amazon Flex has evolved over time, and this lawsuit is related to the practice we changed for more than five years. While we continue to focus on supporting delivery partners and customers.

140,000 Amazon driver will restore $ 60 million in the detained advice

Flexible workers download vehicles with orders at the Amazon Delivery Station

Flexible workers download cars with orders at the Amazon Delivery Station. (Cathy Tran / Bloomberg / Getty Emp)

When I launched Amazon Flex in 2015, consumers managed to raise delivery drivers when going out, which stated that 100 % of the tips would go to drivers.

The lawsuit claimed that Amazon changed its driver’s payment form the following year, and instead of allowing advice to increase the driver’s compensation, the company used it to cover the basic wages of the employees who already promised Amazon to pay drivers.

According to the Federal Trade Committee, the change model for drivers or consumers has not been changed, allowing the model to continue taking advice until 2019, when Amazon “became” familiar with FTC in 2019. “

The company was accused of stealing more than a million dollars in tips to cover employment expenses.

Amazon packages in the wooded area

Amazon packages sit in delivery bags. (Lakefil Police Department)

As part of a settlement with FTC in 2021, all the advice of the discussion was ultimately paid to drivers, according to an Amazon spokesman at the time.

Regardless of the recovery settlement only with FTC, the Public Prosecutor’s Office litigate For restraining relief and civil penalties, noting that there was an additional penalties to nullify illegal behavior.

“It is not enough, after arrest, simply returning the illegal gains,” said Shawwalb. “Instead, there must be meaningful consequences to deter the behavior from the occurrence in the first place. Especially when living expenses are more difficult and difficult, my office will continue to ensure that the diligent boycott residents get each penny of their profits and consumers are not misleading.”

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According to the settlement, Amazon denied all allegations and claims.

“Amazon confirms that she made honest, complete, unambiguous, and accurate representations for customers regarding advice for drivers,” the settlement said.

According to the settlement conditions, Amazon will pay $ 3.95 million, including $ 2.45 million of sanctions and $ 1.5 million in costs.

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The company also agreed to maintain transparent transformation practices.

“If Amazon use tips for any purpose other than increasing the driver’s compensation, the company must provide clear disclosure on how to use advice on both its website and apply it,” the settlement was mentioned.

Fox News’ Daniella Genovese contributed to this report.

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