Amazon has agreed to settle for nearly $4 million due to allegations it took delivery drivers' tips to subsidize labor costs, violating D.C.'s consumer protection laws. This settlement follows a lawsuit claiming Amazon misled customers about the distribution of tips within its Flex delivery program, which enables users to deliver packages with personal vehicles. The company reportedly changed its payment model in 2016 without informing drivers or customers, using tips to offset lower wages offered to drivers, continuing an ongoing trend of scrutiny surrounding Amazon’s labor practices and transparency.
Amazon's multi-million settlement over alleged tip misappropriation reflects ongoing scrutiny of the company’s labor practices and transparency regarding driver compensation.
The attorney general's office emphasized that Amazon's actions misled both customers and drivers about how tips were utilized, violating consumer protection laws.
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