Amazon ftc settlement payouts

On 28 September 2026, the Federal Trade Commission announced that it has begun the final phase of distributing $20 million in settlement funds to thousands of Amazon Flex drivers. This legal action stems from a 2021 complaint in which the FTC alleged that Amazon withheld tips intended for drivers between 2016 and 2019. The commission argued that while Amazon advertised that drivers would receive 100% of customer tips, the company secretly diverted a portion of those funds to offset its own labor costs. After years of litigation and administrative processing, the FTC confirmed that the vast majority of eligible drivers have now received their compensation checks or direct deposits. The agency emphasized that this payout serves as a critical reminder that gig economy platforms must be transparent regarding compensation structures and cannot mislead workers about their earnings. Amazon, which settled the case without admitting wrongdoing, has since updated its payment disclosures to ensure full compliance with federal consumer protection standards regarding independent contractor pay.