Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Amazon drivers handed $60m in tips that were withheld by company - after action by US watchdog

Amazon drivers handed $60m in tips that were withheld by company - after action by US watchdog

The Federal Trade Commission alleged that while Amazon customers were told that 100% of tips were passed to couriers, it was illegally pocketing a big percentage of those tips.

Amazon drivers are being given $60m (£44m) in tips that were illegally withheld by the online retailer, America's consumer watchdog has said.

More than 140,000 drivers are receiving an average of $422 (£310) each while the highest amount going to a single person is more than $28,000 (£20,560).

It comes after the Federal Trade Commission (FTC) sued Amazon and its subsidiary Amazon Logistics, claiming that it failed to pay tips in full that drivers in its Amazon Flex operation had earned.

Amazon is facing legal action in the UK over separate claims in relation to drivers


Amazon Flex drivers deliver goods and groceries ordered through channels such as Prime Now and Amazon Fresh.

It was alleged that the company kept drivers' tips over a two-and-a-half year period and stopped the practice after learning of the agency's investigation in 2019.

Lesley Fair, senior lawyer at the FTC's division of consumer and business education, said in a blog post: "When customers placed orders through Amazon's Prime Now or Amazon Fresh services, Amazon asked: 'How much do you want to tip the courier?'

"Amazon told customers and drivers that '100% of tips are passed on to your courier'.

"But according to the FTC, from late 2016 through August 2019, Amazon illegally pocketed a big percentage of those tips."

The company agreed earlier this year to settle the case and hand over the money it had withheld, the FTC said.

Amazon last week reported a fall in quarterly profits partly due to global supply chain problems


It said it would send 139,507 cheques and 1,621 PayPal payments to Amazon Flex drivers.

Those who had more than $5 withheld by Amazon will receive the full amount of their withheld tips.

Just under 20,000 of the drivers affected are in line for payments of over $600 (£440).

Last month in a separate case in the UK, it was revealed that law firm Leigh Day had launched a claim on behalf of Amazon delivery drivers over their employment rights that it said could result in millions of pounds in compensation.

The lawyers said drivers employed via third-party "delivery service partners" are classified as self-employed, meaning they do not benefit from rights such as holiday pay and the minimum wage.

Last week, Amazon reported a 50% fall in third quarter profits to $3.16bn (£2.32bn) as it boosted pay to attract workers in a tough labour market and grappled with global supply chain problems.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×