London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

Amazon drivers handed $60m in tips that were withheld by company - after action by US watchdog

Amazon drivers handed $60m in tips that were withheld by company - after action by US watchdog

The Federal Trade Commission alleged that while Amazon customers were told that 100% of tips were passed to couriers, it was illegally pocketing a big percentage of those tips.

Amazon drivers are being given $60m (£44m) in tips that were illegally withheld by the online retailer, America's consumer watchdog has said.

More than 140,000 drivers are receiving an average of $422 (£310) each while the highest amount going to a single person is more than $28,000 (£20,560).

It comes after the Federal Trade Commission (FTC) sued Amazon and its subsidiary Amazon Logistics, claiming that it failed to pay tips in full that drivers in its Amazon Flex operation had earned.

Amazon is facing legal action in the UK over separate claims in relation to drivers


Amazon Flex drivers deliver goods and groceries ordered through channels such as Prime Now and Amazon Fresh.

It was alleged that the company kept drivers' tips over a two-and-a-half year period and stopped the practice after learning of the agency's investigation in 2019.

Lesley Fair, senior lawyer at the FTC's division of consumer and business education, said in a blog post: "When customers placed orders through Amazon's Prime Now or Amazon Fresh services, Amazon asked: 'How much do you want to tip the courier?'

"Amazon told customers and drivers that '100% of tips are passed on to your courier'.

"But according to the FTC, from late 2016 through August 2019, Amazon illegally pocketed a big percentage of those tips."

The company agreed earlier this year to settle the case and hand over the money it had withheld, the FTC said.

Amazon last week reported a fall in quarterly profits partly due to global supply chain problems


It said it would send 139,507 cheques and 1,621 PayPal payments to Amazon Flex drivers.

Those who had more than $5 withheld by Amazon will receive the full amount of their withheld tips.

Just under 20,000 of the drivers affected are in line for payments of over $600 (£440).

Last month in a separate case in the UK, it was revealed that law firm Leigh Day had launched a claim on behalf of Amazon delivery drivers over their employment rights that it said could result in millions of pounds in compensation.

The lawyers said drivers employed via third-party "delivery service partners" are classified as self-employed, meaning they do not benefit from rights such as holiday pay and the minimum wage.

Last week, Amazon reported a 50% fall in third quarter profits to $3.16bn (£2.32bn) as it boosted pay to attract workers in a tough labour market and grappled with global supply chain problems.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×