07-02-2025
Amazon agrees to pay D.C. $3.95 million over stolen driver tips
Amazon settled a lawsuit with D.C. over stolen tips on Friday, with the e-commerce behemoth agreeing to pay $3.95 million to the District, including $2.4 million in penalties.
The ligation, filed in 2022 by then-D.C. Attorney General Karl A. Racine, was related to Amazon Flex, a quick-delivery program launched in 2015. According to the Federal Trade Commission, Amazon misled customers between late 2016 and August 2019 over its tip policy. The company encouraged customers to tip drivers and assured them 100 percent of those tips went to the driver, according to the lawsuit.