throbber
UNITED STATES OF AMERICA
`
`BEFORE THE FEDERAL TRADE COMMISSION
`
`
`
`1923123
`
`
`COMMISSIONERS:
`
`
`Rebecca Kelly Slaughter, Acting Chair
`
`
`Noah Joshua Phillips
`
`Rohit Chopra
`Christine S. Wilson
`
`
`In the Matter of
`
`
`AMAZON.COM, INC., a corporation,
`and
`
`
`AMAZON LOGISTICS, INC., a corporation.
`
`
`DECISION AND ORDER
`
`DOCKET NO. C-4746
`
`
`
`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:
`
`
`
`
`Page 1 of 7
`
`
`

`

`1. The Respondents are:
`
`Findings
`
`
`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:
`
`
`(cid:36)(cid:17) “Respondents” means Amazon.com, Inc., and Amazon Logistics, Inc., and their(cid:3)
`successors and assigns, individually or collectively, or in any combination.
`
`(cid:37)(cid:17) “Driver” means someone, regardless of employment status with Respondents, who(cid:3)
`provides delivery services by accepting individual offers to make a single delivery or set(cid:3)
`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.
`
`
`Page 2 of 7
`
`
`

`

`
`
` 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.
`
`
`IT IS FURTHER ORDERED that:
`
`
`
`III. Monetary Relief
`
`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
`
`
`
`
`
`Page 3 of 7
`
`
`

`

`
`
`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
`
`
`Page 4 of 7
`
`

`

`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;
`
`Page 5 of 7
`
`
`

`

`
`
`
`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.
`
`
`
` Page 6 of 7
`
`

`

`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
`
`
`Page 7 of 7
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket