Washington D.C. Attorney General Karl Racine announced a new lawsuit against Amazon.com and Amazon Logistics. The Amazon is accused of "stealing tips from delivery drivers through a deceptive, illegal scheme that tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits." In 2015, Amazon launched its Amazon Flex service, which offers quick deliveries of Amazon products through Amazon delivery drivers, and during the checkout process, the company encouraged consumers to tip their delivery drivers, Racine says in a statement. In 2016, Amazon changed its driver payment model so that a large portion of these tips did not go towards increasing drivers’ compensation but were instead used to pay a portion of what Amazon had already promised to pay the driver, he adds. "Amazon continued to assure consumers that 100% of tips would go to drivers despite the fact that the company was secretly using these tips to subsidize its own labor costs and increase profits," according to the Attorney General. Reference Link
Published first on TheFly
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