Karl Racine sues Amazon for stealing $60 mn in tips

WASHINGTON: District of Columbia (DC) Attorney General Karl Racine has sued e-commerce giant Amazon for stealing consumer tips worth $60 million from delivery drivers through a deceptive, illegal scheme.

In his lawsuit, Racine alleged Amazon’s scheme tricked consumers into thinking they were increasing drivers’ compensation when “Amazon was actually diverting tips to reduce its own labour costs and increase profits”.

“Workers are too often taken advantage of and not paid their hard-earned wages. What’s more, consumers need to know where their tips are going. This suit is about providing workers the tips they are owed and telling consumers the truth,” Racine said in a statement.

“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,” he added.