Beautiful Virgin Islands

Friday, Apr 03, 2026

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
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
×