Amazon will pay more than $61.7 million to the Federal Trade Commission as a settlement related to agency allegations that it withheld tips from Amazon Flex contractual drivers.

The news comes as delivery has emerged as a critical customer service in the wake of the COVID-19 pandemic, with increasing numbers of consumers turning to e-commerce and home delivery on goods and grocery items.

The FTC approved the settlement in a unanimous vote. The agency had alleged that Amazon, in 2016, began paying a low hourly rate in light of increased tip revenue drivers were receiving, according to a CNBC report, and failed to alert drivers of the change.

"Rather than passing along 100% of customers' tips to drivers, as it had promised to do, Amazon used the money itself," Daniel Kaufman, acting director of the FTC Bureau of Consumer Protection, said in a statement. "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."

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