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The Attorney of the US city of Washington has filed a complaint against Amazon. This is because the retail company would not have been honest about the destination or tips consumers gave for the delivery of their order.
Last year, Amazon agreed to pay $62 million in a settlement. But Washington Attorney Karl Racine still wants the company fined for the practice.
In 2015, Amazon launched a Flex service, encouraging customers to pay a tip to the delivery driver of their order. A year later, however, the company adjusted the system so that a large part of the tips no longer went directly to the delivery drivers as an extra but was used to finance the fixed wages.
“Amazon continued to assure consumers that 100 percent of tips go to delivery drivers, even though the company covertly used the tips to subsidize its labour costs and boost profits,” the attorney said.
Amazon believes the complaint is unfounded and says the case concerns practices that changed three years ago.
