D.C. attorney general files lawsuit against Amazon, alleging stolen tips

“Workers in the District of Columbia and throughout our state are much too normally taken gain of and not paid their tricky-gained wages,” Racine stated in a statement. “What’s additional, consumers require to know wherever their strategies are likely. This accommodate is about offering personnel the ideas they are owed and telling customers the real truth. Amazon, 1 of the world’s wealthiest providers, certainly does not need to have to take suggestions that belong to employees.”

The lawsuit worries Amazon Flex, a assistance launched in 2015 that features brief deliveries. When it was launched, the business encouraged consumers to tip supply drivers and certain that 100 p.c of the idea would go to the drivers.

According to the lawsuit, in 2016, Amazon changed the model so drivers could no lengthier see the tip quantities from each and every supply, and a large part of the ideas have been in its place applied to pay out wages already promised to the drivers. The lawsuit more alleges that the enterprise deceived individuals and workers about the design by hiding the actuality of the tip plan.

An Amazon spokesperson explained in an email that the lawsuit was without the need of merit, incorporating that the organization had improved its model in 2019 and that it experienced a payment framework that assures D.C. motorists receive extra than the District’s minimal wage.

In 2021, Amazon reimbursed the Amazon Flex drivers as component of a settlement with the Federal Trade Fee (FTC) and agreed to a nationwide injunction that prohibits the enterprise from switching the way driver ideas are handled with no notifying drivers in advance.

“Nothing is far more significant to us than buyer have faith in. This lawsuit will involve a apply we improved a few yrs back and is with out advantage — all of the shopper suggestions at difficulty have been already compensated to drivers as part of a settlement final calendar year with the FTC,” Amazon spokeswoman Maria Boschetti said in a assertion Wednesday.

Racine argued that the enterprise has not however been held accountable for “consumer harm” violations of D.C.’s Customer Safety Treatments Act (CPPA), which prohibits deceptive and unfair enterprise methods, these types of as misleading people.

The lawyer general’s office environment is in search of civil penalties for just about every violation of the CPPA, payment to the District for fees of the scenario and a court order to assure that the enterprise can not interact in the exercise once again.

This is the second lawsuit Racine has submitted towards the field large. In 2021, his place of work submitted an antitrust criticism from the enterprise, alleging that Amazon held monopoly electricity that resulted in greater costs for customers. A D.C. Superior Court decide dismissed the antitrust match before this calendar year.

In April, the OAG and the U.S. Division of Justice each urged the courtroom to reconsider its dismissal of the antitrust lawsuit against Amazon. Then in August, the Business of the Lawyer General submitted a discover of charm. The town and Amazon will have to post their arguments to the D.C. Court of Appeals by the stop of January right before the situation moves forward.