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Feb. 2, 2021, 10:20 a.m. EST

Amazon to pay $61.7 million to settle FTC charges that it didn't pay Flex drivers all their tips

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By Tomi Kilgore

Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +1.83% agreed to pay more than $61.7 million to settle charges by the Federal Trade Commission, which alleges the ecommerce giant failed to pay Amazon Flex drivers the full amount of tips received over a 2 1/2-year period. The FTC said Amazon only stopped its behavior after the company became aware of an investigation in 2019. "Rather than passing along 100% of customers' tips to drivers, as it had promised to do, Amazon used the money itself," said Daniel Kaufman, Acting Director of the FTC's Bureau of Consumer Protection. "Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers' permission before changing its treatment of tips in the future." Amazon's stock rose 1.7% in morning trading, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.61% gained 1.6%.

/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,219.45
+57.98 +1.83%
Volume: 2.11M
May 14, 2021 3:07p
P/E Ratio
61.32
Dividend Yield
N/A
Market Cap
$1594.40 billion
Rev. per Employee
$297,430
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/zigman2/quotes/210599714/realtime
US : S&P US
4,178.86
+66.36 +1.61%
Volume: 1.30B
May 14, 2021 3:07p
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