The lawsuit alleges that Amazon used deceptive methods to lead consumers to believe that tip money went directly to drivers, when it was actually being used to subsidize wages.
D.C. Attorney General Karl A. Racine on Wednesday announced his office had filed a consumer protection lawsuit against Amazon, alleging that the e-commerce giant stole tips from drivers and deceived consumers about the tipping model.The lawsuit alleges that Amazon used deceptive methods to lead consumers to believe that tip money went directly to drivers, when it actually was being used to subsidize wages.
According to the lawsuit, in 2016, Amazon changed the model so drivers could no longer see the tip amounts from each delivery, and a large portion of the tips were instead used to pay wages already promised to the drivers. The lawsuit further alleges that the company deceived consumers and workers about the model by hiding the reality of the tip policy.
“Nothing is more important to us than customer trust. This lawsuit involves a practice we changed three years ago and is without merit — all of the customer tips at issue were already paid to drivers as part of a settlement last year with the FTC,” Amazon spokeswoman Maria Boschetti said in a statement Wednesday.
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