Amazon’s FTC Settlement Payouts: What You Need to Know
Amazon has started distributing payments to eligible customers as part of a $5.8 million settlement with the Federal Trade Commission (FTC). The resolution addresses claims that Amazon withheld tips from Flex delivery drivers between 2016 and 2019. Here’s what affected drivers and customers should know.
Why Amazon Is Issuing Refunds
The FTC alleged that Amazon misled Flex drivers—independent contractors delivering packages—by promising 100% of customer tips while secretly using portions to offset base pay. This practice reportedly deprived 140,000+ drivers of $61.7 million in tips.
While Amazon settled without admitting fault, it agreed to repay impacted workers through the $5.8 million fund.
Who Qualifies for a Payment?
Eligible recipients include Amazon Flex drivers who worked from 2016–2019 and had tips withheld. The FTC has identified qualifying drivers; no application is needed.
Affected individuals will receive notifications via:
– Email from Rust Consulting, Inc. (the settlement administrator)
– Payment options: PayPal, Zelle, prepaid debit cards, or checks
How Much Will You Get?
Payouts vary based on individual tip losses. Some drivers may receive hundreds of dollars, while others get smaller amounts. The FTC confirms the full $5.8 million will be distributed fairly.
Steps to Take If Eligible
- Monitor Your Inbox – Check for emails from Rust Consulting or Amazon.
- Confirm Payment Method – Follow instructions in the notification.
- Avoid Scams – Only respond to official FTC or Amazon-affiliated communications.
Amazon’s Policy Changes
Amazon updated its payment model to guarantee drivers receive 100% of tips without deductions. The company claims it always paid promised wages but improved transparency to prevent future disputes.
Broader Impact on Gig Workers
The case underscores wage transparency issues in the gig economy, where companies like Uber and DoorDash have faced similar scrutiny. The FTC’s action reinforces accountability for fair pay practices.
Key Takeaways
- Payments are automatic for eligible drivers.
- Distribution is ongoing—check emails for updates.
- Amazon’s tipping policy is now fully transparent.
For questions, visit the FTC’s settlement page or contact Rust Consulting.
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