Beautiful Virgin Islands

Wednesday, Aug 27, 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
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×