The Federal Trade Commission (FTC) has proposed a consent agreement with Amazon regarding allegations of misappropriated driver tips through its Amazon Flex program. Between late 2016 and August 2019, Amazon allegedly withheld nearly a third of tips that customers intended for drivers, amounting to approximately $61 million, despite claiming to pass 100% of tips to drivers. The agreement requires Amazon to pay back the full amount withheld and prohibits the company from changing its tipping practices without driver consent. The proposal is open for public comments until March 12, 2021, before final approval by the FTC.
Simple Explanation
Amazon was told by the FTC that they took money from driver tips that was supposed to go to the drivers, and now Amazon has to give all the tip money back and promise to not do it again.