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Shay Boloor, Wolf’s Financial Strategy CEO, analyzes Amazon and discusses AI’s demand for “making money.”
Amazon has agreed to pay $ 3.95 million to settle a litigation accused of supporting labor costs by stolen by drivers to cover part of the employee’s base wage, DC Attorney General Brian L. Schwalb on Friday in.
According to Schwalb, Amazon has deceived consumers in Washington DC between 2016 and 2019, ensuring that all the tips he provided is going The drivers of Amazon FlexEmployees who deliver packages with their own car.
The Schwalb office claimed that with the spread of millions of dollars, Amazon was able to save its own operating costs and therefore increased profit.
“When companies mislead customers to increase their profits by stealing tips for workers, they cheat consumers, employees and competitors who play according to the rules,” Schwalb said.
Amazon sued to allegedly stole more than $ 1 million tips from shipping workers
The Amazon Flex drive packages loads a personal vehicle. (Chip Somodevilla / Getty Images)
Amazon said in a statement to Fox News Digital that the company disagrees with the claims, noting that the Amazon Flex has since developed.
“For nearly a decade, Amazon Flex has authorized delivery partners to earn extra money according to their own schedule,” said Steve Kelly, Amazon spokesman. “Like all successful programs, Amazon Flex has evolved over time, and this lawsuit is related to a practice we changed over five years ago. While we still disagree with these statements, we are happy to be behind us, so we know Continue to support delivery partners and customers.“
The 140,000 Amazon driver will return $ 60 million for tips that are supposed
Flex workers load vehicles with orders at an Amazon Delivery Station. (Kathy Tran / Bloomberg / Getty Images)
When the Amazon Flex started in 2015, consumers were able to decide at the checkout the delivery drivers, which stated that 100% of the tips would be transferred to drivers.
The lawsuit claimed that Amazon changed the driver’s payment model next year and that instead of allowing tips to increase the driver’s complete compensation, the company used the employees to cover the basic salary. Amazon has already promised to pay the drivers .
According to the Federal Trade Committee, a change in the payment model has not been published to drivers or consumers, allowing the model to continue tips by 2019 when Amazon was “aware of FTC 2019”
The company was accused of stealing more than $ 1 million tips to cover labor costs.
Amazon packages sit in transport bags. (Lakeville police)
As part of the 2021 session with the FTC, all clients in question were finally paid to the drivers, according to the then Amazon spokesman.
It was done with the FTC, the Attorney General’s office, only in addition to the reimbursement settlement sued Due to the infringement and civil sanctions, further sanctions were justified to spoil unlawful behavior.
“It is not enough to get caught, just to give back malicious profits,” Schwalb said. “You need to have meaningful consequences to recognize their breach of duty, not to be lost.”
| Ticking | Security | Last | Change | Change % |
|---|---|---|---|---|
| Amzn | Amazon.com Inc. | 229.15 | -9.68 |
-4.05% |
According to the agreement, Amazon denied all claims and claims.
“Amazon claims to have made a fair, complete, clear and accurate depiction of tips for drivers,” the settlement said.
According to the arrangements, Amazon pays $ 3.95 million, including $ 2.45 million and $ 1.5 million.
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The company also agreed to maintain transparent tilt practices.
“If you use Amazon tips for the purposes of increasing the driver’s compensation, the company will clearly publish the use of tips on both its website and its application,” the town said.
Fox News Daniella Genovese contributed to this report.
