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Amazon to Reimburse Flex Drivers

02/05/2021

Following a directive by the Federal Trade Commission, Amazon will reimburse drivers for $61.7 million representing tips from customers that were not rendered to their independent contractors delivering for Prime Now, Amazon Fresh, and Whole Foods over the period 2016 through 2019.

 

Daniel Kaufman, acting Director of the FTC Bureau of Consumer Protection, stated “rather than passing along 100 percent of customers’ tips to drivers as it had promised to do, Amazon used the money itself.”

 

According to the FTC, Amazon lowered hourly base remuneration in 2016 and used customer tips to make up the difference between previous and new rates.