Amazon to Pay $4 Million to Settle Suit Alleging It Misled Customers on Drivers’ Tips

The deal came four years after federal regulators ordered Amazon to repay $62 million in tips it allegedly withheld from more than 140,000 delivery drivers.

An Amazon delivery hub during Prime Day in Torrance, Calif., on July 12, 2022. Patrick T. Fallon/AFP via Getty Images

Amazon has agreed to pay $3.95 million to settle allegations that it misled customers on tips meant for its delivery drivers.

The settlement, announced Friday by District of Columbia Attorney General Brian Schwalb, resolves a 2022 lawsuit alleging Amazon violated the district’s consumer protection laws by deceiving customers about who was receiving gratuities.