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Amazon To Pay $61.7 Million To Settle FTC Charges It Withheld Some Customer Tips from Amazon Flex Drivers (ftc.gov) 32

Amazon.com has agreed to pay more than $61.7 million to settle charges by the Federal Trade Commission, which alleges the ecommerce giant failed to pay Amazon Flex drivers the full amount of tips received over a 2 1/2-year period. FTC: According to the FTC's administrative complaint against Amazon and its subsidiary, Amazon Logistics, the company regularly advertised that drivers participating in the Flex program would be paid $18-25 per hour for their work making deliveries to customers. The ads, along with numerous other documents provided to Flex drivers, also prominently featured statements such as: "You will receive 100% of the tips you earn while delivering with Amazon Flex." "Rather than passing along 100 percent of customers' tips to drivers, as it had promised to do, Amazon used the money itself," said Daniel Kaufman, Acting Director of the FTC's Bureau of Consumer Protection. "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." Amazon Flex is a program in which drivers, classified by Amazon as independent contractors, can agree to make deliveries using their personal vehicles. Flex drivers deliver goods and groceries ordered through the Prime Now and AmazonFresh programs, which allow customers to give the drivers a tip.
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Amazon To Pay $61.7 Million To Settle FTC Charges It Withheld Some Customer Tips from Amazon Flex Drivers

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  • by alternative_right ( 4678499 ) on Tuesday February 02, 2021 @11:30AM (#61019236) Homepage Journal

    They took the tip money from their drivers, obviously since they have no other source of income. There's corporate greed (really: shareholder greed) but that's going a bit too far, Amazon.

    • by CoolDiscoRex ( 5227177 ) on Tuesday February 02, 2021 @11:41AM (#61019276) Homepage

      You steal a sandwich, criminal law for thee, including the potential of being locked in a cage ,and oh yeah, good luck getting a “job” after you’ve been caught red-handed. Criminal law is for average citizen,

      Steal millions of dollars in tips, you never even face the remote possibility of cage time. No no no. See, they go to civil court, not criminal court. Criminal court is for YOU. NOT THEM. You just get fined a small percentage of your income. No criminal record, no three strikes laws, nothing. You can do this as often as you’d like. Woo-Hoo!

      The justified system is unabashedly two-tier, and the nation you were taught that exists, was largely a myth.

      Yeah, I don’t want to believe it either, but there only so many beers in the fridge and so many football games on TV.

      • The problem is that you did not steal *enough*. ;)

      • The justified system is unabashedly two-tier, and the nation you were taught that exists, was largely a myth.

        It seems to me that it exists in a state of punctuated equilibrium, with long periods of stability interrupted by rapid change that then prompts a return to the stable state, or at least an attempt to do so.

    • Well, at least the government got its cut. Sounds like the fucking mafia. Why didnâ(TM)t they get it back to the drivers?
      • "Under the terms of the settlement with the FTC, Amazon will be required to pay $61,710,583, which will be used by the FTC to compensate Flex drivers."
      • Well, at least the government got its cut. Sounds like the fucking mafia.

        Why not both?

        Political machine, in U.S. politics, a party organization, headed by a single boss or small autocratic group, that commands enough votes to maintain political and administrative control of a city, county, or state.

        The rapid growth of American cities in the 19th century, a result of both immigration and migration from rural areas, created huge problems for city governments, which were often poorly structured and unable to p

    • doing this. This stuff is par for the course. Studies show Americans lose more to wage theft than property theft.
  • by gwills ( 3593013 ) on Tuesday February 02, 2021 @11:36AM (#61019254)
    Company: We dont pay our employee/contractors/slaves enough to life, so you can make up the difference, right? Customer - feels obligated to tip out of human empathy and social expectations... Company: STEALS TIP ANYWAY Fuck this system
    • 1. Give them free shit.
      2. Reduce costs (but this means no free shit).

      Which will 'Murka choose?

    • In many countries of the world, tipping is considered quite rude. It is the same as going "You're poor! Loser! Here's some change for your hat, lol.".

      And in most, it really just means "You did your job exceptionally well", with no obligation to tip.
      Also, *you* have been tipped. You are under no obligation to disclose the amount, let alone give any to your employer. This is a business transaction only between you and the customer. Taking that money, as an employer, is I think usually flat out illegal. And pa

      • 1099 is broken and needs reform maybe even some very basic rules can really show that more workers need to be w2

      • Also, *you* have been tipped. You are under no obligation to disclose the amount, let alone give any to your employer. ...

        Unless, of course, the tip is done on the credit card payment, which the employer processes.

        Which is how, like, 100% of Amazon Flex bills are paid.

      • by dryeo ( 100693 )

        The taxman is usually interested in those tips.

  • Is another name for wage slavery. I guess the slaves won that particular battle. Good for them. Next time Amazon wants to change the rules of the game, the slaves will be warned in advance and asked to agree. It's good you think, right? Yeah, until you realize the slaves won't be able to refuse, and that'll be the end of that. But that time around; Amazon will be covered.

    • that slavery doesn't benefit the working class. One of the main reasons slavery went away was working class Americans got tired of competing with slaves in the job market (I use the word "compete" loosely, you can't compete with slave labor).

      We all earn less money due to the gig economy. It drives down wages because people struggle to get out of it. Most don't make it, but the ones that do instead of being comfortable driving for a living are now gunning for your job. We like to joke about "learn to cod
      • To add to that: Ow wages do not benefit busimesses either.

        There was a nice paper, that did show, that in a high wage economy, businesses make just as much money as in a low wage one. It is just that they make less if they are somewhere in-between. And so, once you're in a low wage economy, it's hard to get out. Because businesses would first have to go through a "in-between" phase.

        Thing that is ignored there, obviously, is that in a high wage economy, everyone would be more well off and happier and healthie

      • Agreed. The more the world connects the more travel is opened the more the common person loses, why becase of the thought that lower waged people can come in and do your job etc.
      • inmate labor is an other I think at tops at $1/hr they do get low lost med. TX is the highest at $100/year max copay.

    • One kind of failure is not being able to function as a business without cheating people!
      An even bigger failure is having to cheat and exploit employees/contractors!

      If you can function well but cheat anyway simply out of greed; then you are just simply a failed human.

  • by rea1l1 ( 903073 ) on Tuesday February 02, 2021 @11:51AM (#61019306) Journal

    "withheld" , "used" , "misappropriated"

    stole

    Which Amazon executive is being thrown in jail?

  • The FTC will be providing the IRS with information on the now-restored tip income, so that they can make sure the government gets its proper share.

    • WTF? Greedy management is the villain here... Greed is the root of all evil not a virtue! But nice whataboutism emotional appeal to defend the deadliest sin.

      Tips need to be illegal everywhere. Americans do not realize that tipping is nearly extinct everywhere else. It's incompetent management externalizing their responsibility and forcing customers to estimate fair salary and more like a lottery for the workers as to the timing and customers how much they earn. It's management's job to pay a market wage

  • That criminals can just *buy* crimes for "a negligible fee", IFF they are corporartions?

    I'm asking, because I'm thinking of starting a discount white collar crime business: Become part of my dummy corporation while commiting your white collar crime, we'll bundle you with others committing the same crime, we'll pay the fine once, and everyone chips in a fraction of that.

    I bet in the US that'd even be perfectly legal! ;)

    I third word stares, leave away the "white collar". ;)

    I can already see the headlines:
    "Thi

    • Thats because the corporations and their gods the managers and ceos own america. CEOs etc pay themselves bonuses for scum bag tactics like this , they often boast how they made millions for the company, but theres no accountability in company law for "wrong" actions.
  • Employer stealing tips was too common long before Amazon dipped their pail into the pool. Unfortunately, the convenience of credit cards and like methods of payment have made it easier for others to get their hands on tip money. (besides employers, managers, cashiers and even other serving staff also have the means and opportunity to skim tips). At the local level, the practice has very seldom resulted in criminal charges, much less convictions.
    Of course, small local businesses do not have the scale of an

  • I don't know how it works elsewhere, but here they almost never call or ring. If they have access to the front door, they may not even knock, They're held to such a high delivery rate sometimes my package is five feet from my condo front door, on it's side - clearly tossed there as they keep moving.

    Plus... just, no. I'm not adding another class of worker to my tippable list. Enough is enough.

  • Why is there no jail time for the managers that made this policy ?

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