Amazon reaches settlement with US FTC on tips for drivers

US technology giant Amazon has reached a settlement with US regulators regarding charges that it failed to pay its Flex drivers the tips received from customer over the preceding two-and-a-half years.

In its administrative complaint, the US Federal Trade Commission also alleged that Amazon had only stopped that practice when it became aware of its investigation.

Amazon will now reimburse the full $61.7m of the funds that it had withheld.

"Rather than passing along 100 percent of customers' tips to drivers, as it had promised to do, Amazon used the money itself," FTC Bureau of Consumer Protection, Daniel Kaufman, said.

"Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated, and requires Amazon to get drivers' permission before changing its treatment of tips in the future."