Amazon To Pay Back USD 60 Million To Over 140,000 Drivers As Part Of Settlement With FTC


The Federal Trade Commission has said that Amazon will be paying back USD 60 million to over 140,000 drives. The money being repaid is the tip that the company allegedly withheld from drivers. The development comes after the FTC and Amazon reached a settlement in February. The tech giant has agreed to pay USD 61.7 million, the total amount it received as a tip for drivers but allegedly withheld from them. The money will be used by the commission to compensate Amazon Flex drivers. Earlier in February, there were reports that Amazon Flex drivers would get 100 percent of the tips they earn while delivering.

Daniel Kaufman, acting director of the Bureau of Consumer Protection, FTC, said that Amazon used the tip money itself instead of paying 100 percent of customers’ tips to drivers. Amazon had promised that it would pay the full tip amount to drivers. Now, the FTC is paying the due amount of drivers back. It is sending around 1,621 payments and 139,507 checks to drivers. Most of the Amazon Flex drivers will get an average check of USD 422. But the FTC said that there are around 20,000 drivers who will get checks for more than USD 600. The maximum amount that a single Amazon Flex driver would receive is as much as USD 28,000.

The Federal Trade Commission has said that drivers need to get their checks deposit or cashed before January 7. For those uninitiated, Amazon Flex is totally different from the normal delivery drivers of Amazon. Flex drivers are independent contractors who can start delivering orders by simply downloading an app. They will need a personal vehicle say a mid-sized sedan or a larger vehicle to make deliveries. Flex drivers can select different orders they want to deliver that are ordered through Amazon Prime Now and Amazon Fresh programs. The company allows customers to tip these drivers as per their wish.