NEW YORK (AFP) – The District of Columbia on Wednesday said it is suing Amazon for allegedly stealing tips from its Flex service delivery drivers to reduce labour costs and boost profits.
The lawsuit accuses Amazon of breaking local law regarding deceptive trade practices and came despite the company having already compensated drivers as part of a settlement with the Federal Trade Commission (FTC).
“When a company is caught stealing from its workers, it is not enough for the company to repay the amount stolen,” Attorney General of local Washington, DC government Karl Racine argued in the suit.
“Stealing from workers is theft, and significant penalties are necessary to strongly disincentivise this unlawful conduct.” The suit aimed at Amazon.com and Amazon Logistics contends that from late 2016 to mid-2019 the e-commerce colossus tricked consumers into thinking tip money was going to Flex service drivers when it was being used to reduce operating costs.
“Amazon, one of the world’s wealthiest companies, certainly does not need to take tips that belong to workers,” Racine said in a release. “Amazon can and should do better.”
Amazon launched Flex in 2015, offering drivers the opportunity to earn from USD18 to USD25 hourly, plus tips, for using their vehicles to deliver groceries or packages for the company.