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ARTICLE · 23 DECEMBER 2022

Tipping Point For State Attorneys General?

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

Kelley Drye & Warren LLP

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Earlier this month, we reported that the AGs (including the DC Attorney General's Office) are paying close attention to delivery and service fees.

United StatesMedia, Telecoms, IT, Entertainment
Paul Singer
Paul Singer
Beth Bolen Chun
Beth Bolen Chun
Abigail Stempson
Abigail Stempson

Earlier this month, we reported that the AGs (including the DC Attorney General's Office) are paying close attention to delivery and service fees. Sure enough, the DC AG's office filed yet another lawsuit related to delivery fees on December 7.

The District alleges that Amazon's Flex tipping practices deceived customers from 2016-2019, stopping only after an FTC investigation ultimately resulted in a 2021 settlement. While Amazon had represented that all tips would be paid to drivers, in actuality, tips were deducted out of payments to those drivers. This resulted in a net benefit to Amazon, rather than to the drivers, which the AG claims was contrary to customer expectations and deceptive even in the eyes of its own employees. The District is seeking civil penalties and a court order to ensure that Amazon is never able to engage in this practice again. The FTC settlement included a $61.7 million payment which represents the full amount that Amazon allegedly

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