The Amazon Case Signals a Tougher Stance on Gig Economy Firms
WiredThe Federal Trade Commission said Tuesday that Amazon had agreed to repay drivers for its Flex delivery service almost $62 million that consumers had intended as tips but that Amazon retained for several years. The FTC called Amazon’s tipping practices “deceptive.” “We have a long history of bringing cases against bogus business opportunities and phony income claims. The move is “unmistakably an indication of the agency’s commitment to devoting additional attention and enforcement resources to monitoring the behavior of gig employers and to punish misrepresentation and fraud,” says William Kovacic, a former chair of the FTC and now a professor at George Washington University Law School. Meanwhile, according to the FTC, internal Amazon emails show employees describing the situation as “a huge PR risk for Amazon” and “an Amazon reputation tinderbox.” In mid-2019, Amazon adjusted its tipping practices.