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WASHINGTON (Reuters) – The District of Columbia attorney general’s office filed suit Wednesday against Amazon.com Inc (NASDAQ:) alleging it previously withheld tips from delivery drivers.
Attorney General Karl Racine said Amazon “tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits” through its Amazon Flex (NASDAQ:) service.
Last year under a settlement with the U.S. Federal Trade Commission, Amazon paid $61.7 million to more than 140,000 drivers. Racine said Amazon has “thus far escaped appropriate accountability, including any civil penalties, for consumer harm.”
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