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Amazon has agreed to pay nearly $4 million to settle charges that the e-commerce company subsidized its labor costs by taking tips its delivery drivers received from customers, District of Columbia Attorney General Brian L. Schwalb said Friday. The settlement came four years after Amazon forked over $61.7 million to resolve a complaint the Federal Trade Commission brought over similar accusations. In 2022, the office of D.C.’s attorney general at the time followed up with a lawsuit alleging Amazon violated the Districts consumer protection laws by misleading residents about how tips paid digitally were used. According to the lawsuit, the affected drivers were part of Amazons Flex business, which allows people to deliver Amazon packages with their own cars. D.C.s lawsuit said that after launching the program in 2015, the company represented to consumers that all tips added during check-out for Amazon Flex orders would go to drivers. But both the District and the FTC alleged that Amazon changed its payment model in late 2016 to lower its costs but did not disclose the switch to either customers or drivers. In particular, the FTC’s previous complaint alleged the company algorithmically reduced its own wages for drivers in different locations using data it collected about average tips in a specific area. Amazon then used the tips to make up the difference between its new base pay and the $18-$25 per hour it had promised drivers, the complaint said. The FTC said Amazon didnt stop taking the tips until 2019, when the company found out about the agency’s investigation into the issue. Amazon has denied the allegations and did not admit to wrongdoing as part of the settlement announced Friday. Like any successful program, Amazon Flex has evolved over time, and this lawsuit relates to a practice we changed more than five years ago, Amazon spokesperson Steve Kelly said in a statement. Under the terms of the settlement, the company will pay $2.45 million in penalties plus $1.5 million in legal fees. It must also disclose on its website and app how tips impact driver earnings.
Category:
E-Commerce
The cost of childcare has been climbing precipitously for the past decade, with some families spending about a quarter of their yearly incomeor moreon those expenses. As federal funding and pandemic-era relief has disappeared, many providers have struggled to keep their doors open, making it even more difficult for families to find affordable care. By federal standards, families should only be spending 7% of their annual income on childcare. A new analysis by the National Women’s Law Center (NWLC) finds that as of 2025, the average family would need to earn at least $180,000 annually to comfortably afford the national cost of infant care, which is around $12,655. (Childcare costs tend to be steepest for infants and children under the age of two.) In states with a higher cost of living, such as California and New York, the annual income required to ensure that childcare is affordable is upwards of $250,000. The NWLC analysis indicates that, based on the affordability standard set by the Department of Health and Human Services (HHS), childcare is out of reach for families in every state across the U.S. In South Dakota, a state where the cost of care is below the average, a family’s annual income would still need to be nearly $98,000; on the other end is a region such as Washington, D.C., where families need to earn $330,000 annually to easily afford the cost of care for one child. Childcare advocates have long argued that it’s impossible to address the affordability crisis without public investment and additional federal funding, given the high labor costs associated with this care. Many centers already operate with tight margins, as evidenced by the challenges some providers are currently facing after President Trump’s proposed funding freezewhich has since been rescindedderailed payments for those in the Head Start program, which subsidizes childcare costs for low-income families. Some providers have reportedly been unable to pay staff and were forced to temporarily close their doors, and according to the National Head Start Association, nearly 20,000 children and families could be impacted if those programs continue to be unable to access funding. Given Trump’s track record, it’s also possible that childcare providers and parents may have to contend with further cuts to federal programs that help support low-income familiesrather than the additional funding that the childcare industry sorely needs.
Category:
E-Commerce
LG Electronics USA is recalling half a million electric ranges that have been involved in at least 28 fires, resulting in numerous injuries and a few pet deaths. But instead of issuing a refund or replacement, the home appliance maker is sending customers warning label stickers. The Consumer Product Safety Commission (CPSC) posted an alert on Thursday that it received at least 86 reports of “unintentional activation of the front-mounted knobs leading to “at least five fires,” which “caused extensive property damage totaling over $340,000” as well as burns and eight minor injuries, with three fires resulting in pet deaths. According to the announcement, customers and their pets can accidentally activate the front-mounted knobs on LG Slide-In Ranges and Freestanding Ranges, potentially causing fires. In response, LG is encouraging consumers to use the ranges’ Lock Out or Control Lock features, which “[lock] the cooktop . . . from being turned on even when the knob is turned, reducing the risk of accidental activation,” according to a statement from the company. “Id like to clarify that this is not the usual kind of CPSC ‘recall’ because the affected products have a proven safety feature built in,” John Taylor, senior vice president of LG Electronics USA Inc., told Fast Company in a statement. Consumers can find detailed instructions for using the Lock Out/Control Lock features at LGcares.com. Where were the ranges sold? According to the CPSC, the ranges were sold from 2015 to January 2025, for between $1,400 and $2,650, at the following stores: Best Buy Costco The Home Depot Lowes In addition, the recall notes the ranges were sold at other appliance stores nationwide and online at LG.com. The model and serial numbers of the affected products are listed here. LG told Fast Company on Friday that for 10 of the 11 models listed, only those units manufactured through 2023, as indicated by serial number, are affected. All units of model LDE4413 are affected. (The serial numbers can be found inside the oven door or storage drawer located on the bottom of the oven.) What should I do if I think my range was recalled? Consumers should contact LG through the company’s website for a free warning label and placement instructions, and use the Lock Out/Control Lock function on the range control panel to disable heating elements when the range is not in use. Here’s LG’s instructional video on how to use the Lock Out/Control Lock features. Consumers should also keep children and pets away from the knobs and not leave objects on the range when it’s not in use. And before leaving the house or going to bed, check the range knobs to ensure they are off.
Category:
E-Commerce
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