Amazon is being sued for allegedly 'stealing' driver tips from DC

Amazon is facing more legal trouble for allegedly depriving delivery drivers of their tips. The District of Columbia sued Amazon for claiming the company "stealed" tips from Flex drivers. As the Federal Trade Commission argued last year, DC says Amazon changed its policies in 2016 to use a large portion of drivers' tips to cover base pay and operational costs. The company not only used "misleading" language in its response to concerned couriers, but falsely told customers that 100% of tips would go to drivers, according to the district attorney general's office.

DC has acknowledged that Amazon paid $61.7 million as part of a settlement with the FTC. However, he said the federal agreement helped Amazon evade "proper liability" that included penalties for harm to consumers. The Attorney General's office is seeking civil penalties for each violation of the District's Consumer Protection Procedures Act, as well as a court order prohibiting Amazon from performing similar practices in the future.

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In a statement to Engadget, Amazon argued the lawsuit is "without merit" and reflects policies changed in 2019. The tech giant previously paid drivers tips under the FTC settlement, according to a spokesperson.

Legal battles like this are not unique to Amazon. DoorDash faced a lawsuit from DC in 2019 on comparable charges. The food delivery service allegedly used tips of less than $10 to replace the couriers' guaranteed salary, but still implied that these were bonuses. DoorDash revised its rules earlier that year to address complaints.

The timing of the trial is far from ideal for Amazon, to put it mildly. The company has just launched a "thank my driver" feature that allows Alexa users in the US to share their appreciation for the courier who dropped off their last package. Although it's supposed to motivate drivers, the gratitude will be only verbal in most cases - Amazon only gives out $5 in rewards to drivers for the first million "thanks". As you can imagine, this might not go down well at a time when Amazon has been accused of undertrading drivers and imposing harsh working conditions.

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