1923123
UNITED STATES OF AMERICA
BEFORE THE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Rebecca Kelly Slaughter, Acting Chair
Noah Joshua Phillips
Rohit Chopra
Christine S. Wilson
In the Matter of
DECISION AND ORDER
AMAZON.COM, INC., a corporation,
DOCKET NO. C-4746
and
AMAZON LOGISTICS, INC., a corporation.
DECISION
The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and
practices of the Respondents named in the caption. The Commission’s Bureau of Consumer
Protection (“BCP”) prepared and furnished to Respondents a draft Complaint. BCP proposed to
present the draft Complaint to the Commission for its consideration. If issued by the
Commission, the draft Complaint would charge the Respondents with violations of the Federal
Trade Commission Act.
Respondents and BCP thereafter executed an Agreement Containing Consent Order
(“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondents that
they neither admit nor deny any of the allegations in the Complaint, except as specifically stated
in this Decision and Order, and that only for purposes of this action, they admit the facts
necessary to establish jurisdiction; and 2) waivers and other provisions as required by the
Commission’s Rules.
The Commission considered the matter and determined that it had reason to believe that
Respondents have violated the Federal Trade Commission Act, and that a Complaint should
issue stating its charges in that respect. The Commission accepted the executed Consent
Agreement and placed it on the public record for a period of 30 days for the receipt and
consideration of public comments. The Commission duly considered any comments received
from interested persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further
conformity with the procedure prescribed in Rule 2.34, the Commission issues its Complaint,
makes the following Findings, and issues the following Order:
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Findings
1. The Respondents are:
a. Respondent Amazon.com, Inc., a Delaware corporation with its principal office or
place of business at 410 Terry Avenue North, Seattle, Washington, 98126.
b. Respondent Amazon Logistics, Inc., a Delaware corporation with its principal office
or place of business at 410 Terry Avenue North, Seattle, Washington, 98126. Amazon
Logistics, Inc. is a wholly owned subsidiary of Amazon.com, Inc.
2. The Commission has jurisdiction over the subject matter of this proceeding and over the
Respondents, and the proceeding is in the public interest.
ORDER
Definitions
For purposes of this Order, the following definitions apply:
$ “Respondents” means Amazon.com, Inc., and Amazon Logistics, Inc., and their
successors and assigns, individually or collectively, or in any combination.
% “Driver” means someone, regardless of employment status with Respondents, who
provides delivery services by accepting individual offers to make a single delivery or set
of deliveries to Respondents’ customers.
Provisions
I. Prohibited Misrepresentations
IT IS ORDERED that Respondents, and Respondents’ officers, agents, employees, and
attorneys, and all other persons in active concert or participation with any of them, who receive
actual notice of this Order, whether acting directly or indirectly, in connection with any delivery
program or service using Drivers, must not misrepresent, expressly or by implication:
A. The income a Driver is likely to earn;
B. The amount Respondents will pay Drivers;
C. That Respondents will give Drivers customer tips in addition to Respondents’
contribution to Drivers’ earnings;
D. The percentage or amount of any customer tip a Driver will receive; or
E. That any amount customers pay is a tip.
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II. Prohibition Against Unauthorized Use of Tips
IT IS FURTHER ORDERED that Respondents, Respondents’ officers, agents, employees,
and attorneys, and all other persons in active concert or participation with any of them, who
receive actual notice of this Order, whether acting directly or indirectly, in connection with any
delivery program or service using Drivers, must not change the extent to which they use a
Driver’s tips toward the Respondents’ contribution to the Driver’s earnings without first
obtaining express informed consent from the Driver.
III. Monetary Relief
IT IS FURTHER ORDERED that:
A. Respondents must pay to the Commission $61,710,583, which Respondents stipulate
their undersigned counsel holds in escrow for no purpose other than payment to the
Commission.
B. Such payment must be made within 8 days of the effective date of this Order by
electronic fund transfer in accordance with instructions provided by a representative of
the Commission.
C. Respondents relinquish dominion and all legal and equitable right, title, and interest in all
assets transferred pursuant to this Order and may not seek the return of any assets.
D. The facts alleged in the Complaint will be taken as true, without further proof, in any
subsequent civil litigation by or on behalf of the Commission to enforce its rights to any
payment pursuant to this Order, such as a nondischargeability complaint in any
bankruptcy case.
E. The facts alleged in the Complaint establish all elements necessary to sustain an action by
or on behalf of the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy
Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for
such purposes.
F. All money paid to the Commission pursuant to this Order may be deposited into a fund
administered by the Commission or its designee to be used for relief, including consumer
redress and any attendant expenses for the administration of any redress fund. If a
representative of the Commission decides that direct redress to consumers is wholly or
partially impracticable or money remains after redress is completed, the Commission may
apply any remaining money for such other relief (including consumer information
remedies) as it determines to be reasonably related to Respondents’ practices alleged in
the Complaint. Any money not used is to be deposited to the U.S. Treasury.
Respondents have no right to challenge any activities pursuant to this Provision.
IV. Driver Information
IT IS FURTHER ORDERED that Respondents must directly or indirectly provide
sufficient Driver information to enable the Commission to efficiently administer consumer
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redress to Drivers. Respondents represent that they have provided this redress information to the
Commission. If a representative of the Commission requests in writing any information related
to redress, Respondents must provide it, in the form prescribed by the Commission
representative, within 14 days.
V. Acknowledgments of the Order
IT IS FURTHER ORDERED that Respondents obtain acknowledgments of receipt of this
Order:
A. Each Respondent, within 10 days after the effective date of this Order, must submit to the
Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.
B. For 3 years after the issuance date of this Order, each Respondent must deliver a copy of
this Order to: (1) all principals, officers, directors, and LLC managers and members of
Respondents; (2) all employees, agents, and representatives of Respondents managing
conduct related to the subject matter of this Order; and (3) any business entity resulting
from any change in structure as set forth in the Provision titled Compliance Reports and
Notices. Delivery must occur within 10 days after the effective date of this Order for
current personnel. For all others, delivery must occur before they assume their
responsibilities.
C. From each individual or entity to which Respondent delivered a copy of this Order,
Respondent must obtain, within 30 days, a signed and dated acknowledgment of receipt
of this Order.
VI. Compliance Reports and Notices
IT IS FURTHER ORDERED that Respondents make timely submissions to the
Commission:
A. One year after the issuance date of this Order, each Respondent must submit a
compliance report, sworn under penalty of perjury, in which each Respondent must:
1. identify the primary physical, postal, and email address and telephone number, as
designated points of contact, which representatives of the Commission, may use to
communicate with Respondent;
2. identify all of that Respondent’s businesses that could violate this Order by all of their
names, telephone numbers, and physical, postal, email, and Internet addresses;
3. describe the activities of each business, including changes to and representations
about Drivers’ tips or compensation, the means of advertising, marketing, and sales,
and the involvement of any other Respondent;
4. describe in detail whether and how that Respondent is in compliance with each
Provision of this Order; and
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5. provide a copy of each Acknowledgment of the Order obtained pursuant to this
Order, unless previously submitted to the Commission.
B. For 10 years after the issuance date of this Order, each Respondent must submit a
compliance notice, sworn under penalty of perjury, within 14 days of any change in the
following:
1. any designated point of contact; or
2. the structure of any Respondent or any entity that Respondent has any ownership
interest in or controls directly or indirectly that may affect compliance obligations
arising under this Order, including: creation, merger, sale, or dissolution of the entity
or any subsidiary, parent, or affiliate that engages in any acts or practices subject to
this Order.
C. Each Respondent must submit notice of the filing of any bankruptcy petition, insolvency
proceeding, or similar proceeding by or against such Respondent within 14 days of its
filing.
D. Any submission to the Commission required by this Order to be sworn under penalty of
perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by
concluding: “I declare under penalty of perjury under the laws of the United States of
America that the foregoing is true and correct. Executed on: ” and supplying the
date, signatory’s full name, title (if applicable), and signature.
E. Unless otherwise directed by a Commission representative in writing, all submissions to
the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by
overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement,
Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue
NW, Washington, DC 20580. The subject line must begin: “In re Amazon.com, Inc.,
FTC File No. 1923123.”
VII. Recordkeeping
IT IS FURTHER ORDERED that Respondents must create certain records for 10 years
after the issuance date of the Order, and retain each such record for 5 years. Specifically, each
Respondent, in connection with any delivery program or service using Drivers, must create and
retain the following records:
A. accounting records showing the revenues from all goods or services sold;
B. personnel records showing, for each Driver and each person who participates in conduct
related to the subject matter of the Order, whether as an employee or otherwise, that
person’s: name; addresses; telephone numbers; job title or position; dates of service; and
(if applicable) the reason for termination;
C. records of all consumer complaints related to Drivers’ tips or earnings, whether received
directly or indirectly, such as through a third party, and any response;
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D. all records necessary to demonstrate full compliance with each provision of this Order,
including all submissions to the Commission; and
E. a copy of each unique advertisement or other marketing material concerning the subject
matter of this Order.
VIII. Compliance Monitoring
IT IS FURTHER ORDERED that, for the purpose of monitoring Respondents’
compliance with this Order:
A. Within 10 days of receipt of a written request from a representative of the Commission,
each Respondent must: submit additional compliance reports or other requested
information, which must be sworn under penalty of perjury, and produce records for
inspection and copying.
B. For matters concerning this Order, representatives of the Commission are authorized to
communicate directly with each Respondent. Respondents must permit representatives
of the Commission to interview anyone affiliated with any Respondent who has agreed to
such an interview. The interviewee may have counsel present.
C. The Commission may use all other lawful means, including posing through its
representatives as consumers, suppliers, or other individuals or entities, to Respondents or
any individual or entity affiliated with Respondents, without the necessity of
identification or prior notice. Nothing in this Order limits the Commission’s lawful use
of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49,
57b-1.
IX. Order Effective Dates
IT IS FURTHER ORDERED that this Order is final and effective upon the date of its
publication on the Commission’s website (ftc.gov) as a final order. This Order will terminate on
June 9, 2041, or 20 years from the most recent date that the United States or the Commission
files a complaint (with or without an accompanying settlement) in federal court alleging any
violation of this Order, whichever comes later; provided, however, that the filing of such a
complaint will not affect the duration of:
A. Any Provision in this Order that terminates in less than 20 years;
B. This Order’s application to any Respondent that is not named as a defendant in such
complaint; and
C. This Order if such complaint is filed after the Order has terminated pursuant to this
Provision.
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Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent
did not violate any provision of the Order, and the dismissal or ruling is either not appealed or
upheld on appeal, then the Order will terminate according to this Provision as though the
complaint had never been filed, except that the Order will not terminate between the date such
complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date
such dismissal or ruling is upheld on appeal.
By the Commission.
April J. Tabor
Secretary
SEAL:
ISSUED: June 9, 2021
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