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Amazon will repay $62 million in tips that the FTC says it shorted Flex drivers for two and a half years

  • Amazon will pay $61.7 million in tips that regulators say it owes to Flex delivery drivers.
  • According to the complaint, the company failed to honor promises it made to drivers and customers.
  • The Federal Trade Commission unanimously approved the order, which was announced earlier this year.
  • See more stories on Insider’s business page.

Amazon will repay nearly $62 million in tips to its Flex delivery drivers after the US Federal Trade Commission voted unanimously on a final order Thursday.

Regulators argued in a complaint announced in February that the company had failed to honor promises it made in advertisements and other documents.

At issue were statements that drivers in its Flex program would earn $18 to $25 per hour, as well as “100% of the tips you earn while delivering with Amazon Flex.”

Over a two-and-a-half year period, the company failed to pay the full amount of tips they received from customers who were also told that drivers would receive all tips paid, according to the complaint.

“The company stopped the challenged conduct only after becoming aware of the FTC’s investigation in 2019,” the FTC said.

“While we disagree that the historical way we reported pay to drivers was unclear, we added additional clarity in 2019 and are pleased to put this matter behind us,” an Amazon spokesperson said in a statement to Insider. The spokesperson added that Flex drivers now earn more than $25 per hour on average.

The payment represents the total amount allegedly withheld, and will be used by the FTC to compensate affected drivers. Amazon is also barred from changing how it calculates tip compensation without first getting consent from drivers.

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