Washington DC Attorney General Karl Racine filed a lawsuit against Amazon on Wednesday, accusing the tech giant of deceiving its customer base and “stealing” tips from delivery drivers.
against Amazon on Wednesday, accusing the tech giant of deceiving its customer base and “stealing” tips from delivery drivers.on Wednesday, AG Karl Racine announced his new lawsuit against Amazon, and accused the company of “stealing tips from delivery drivers through a deceptive, illegal scheme that tricked consumers into thinking they were increasing drivers’ compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits.
“Amazon, one of the world’s wealthiest companies, certainly does not need to take tips that belong to workers. Amazon can and should do better,” Racine added. When customers are checking out, they are encouraged to tip their delivery drivers. The company offers a default tip amount and assures consumers that 100 percent of the tip amount would go to the drivers.
Meanwhile, the company continued to tell its customers that 100 percent of the tips went to the delivery drivers, despite the fact that the e-commerce giant was “secretly using these tips to subsidize its own labor costs and increase profits,” Racine added.
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