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French watchdog orders Amazon to pay $3.5 million in penaltiesPARIS (Reuters) - A French watchdog has ordered U.S. e-commerce giant Amazon.com to pay 3.3 million euros ($3.5 million) in penalties for failing to modify contractual provisions related to third-party sellers by the deadline it set, the watchdog said on Wednesday.
: A logo of Amazon is seen on a company's logistics centre
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France's DGCCRF consumer fraud watchdog said in a statement Amazon had been ordered to make the changes, aimed at correcting imbalances in contractual terms between Amazon's online marketplace and third-party sellers, by March 22.
Amazon had complied with DGCCRF's orders a month later, on April 28, the watchdog said, which led to penalties equivalent to 90,000 euros per day of delay.
The DGCCRF's orders followed an investigation by the agency, placed under the authority of France's finance ministry, and led to the conclusion that Amazon didn't abide by the so called "platform-to-business" rules adopted by the European Union in 2019.
Amazon said it would appeal against DGCCRF's penalties.
"The DGCCRF has acknowledged that the changes we implemented in April are consistent with its injunction," Amazon said in a written statement.
"However, we continue to disagree with the DGCCRF on its findings, decisions and related penalty, and are challenging each of them in court."
($1 = 0.9527 euros)
(Reporting by Mathieu Rosemain; Editing by Elaine Hardcastle)
France's DGCCRF consumer fraud watchdog said in a statement Amazon had been ordered to make the changes, aimed at correcting imbalances in contractual terms between Amazon's online marketplace and third-party sellers, by March 22.
Amazon had complied with DGCCRF's orders a month later, on April 28, the watchdog said, which led to penalties equivalent to 90,000 euros per day of delay.
The DGCCRF's orders followed an investigation by the agency, placed under the authority of France's finance ministry, and led to the conclusion that Amazon didn't abide by the so called "platform-to-business" rules adopted by the European Union in 2019.
Amazon said it would appeal against DGCCRF's penalties.
"The DGCCRF has acknowledged that the changes we implemented in April are consistent with its injunction," Amazon said in a written statement.
"However, we continue to disagree with the DGCCRF on its findings, decisions and related penalty, and are challenging each of them in court."
($1 = 0.9527 euros)
(Reporting by Mathieu Rosemain; Editing by Elaine Hardcastle)
Washington DC sues Amazon over withheld delivery driver tips
WASHINGTON (Reuters) -The District of Columbia attorney general's office on Wednesday sued Amazon.com Inc and its Amazon Logistics subsidiary alleging the biggest online retailer had withheld tips from delivery drivers.
Washington Attorney General Karl Racine said the company "tricked consumers into thinking they were increasing drivers' compensation when Amazon was actually diverting tips to reduce its own labor costs and increase profits" through its Amazon Flex service.
Amazon Flex drivers use their own vehicles to deliver goods and groceries ordered through programs like Prime Now and Amazon Fresh. The FTC alleged the company kept drivers' tips over a 2-1/2 year period and stopped the practice after learning of the FTC investigation in 2019, the FTC said in 2021.
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The lawsuit, filed in the Superior Court for the District of Columbia, seeks civil penalties for every violation and a court order to bar Amazon from re-engaging in the practice.
Last year under a settlement with the U.S. Federal Trade Commission, Amazon paid $61.7 million to more than 140,000 drivers.
Amazon has "thus far escaped appropriate accountability, including any civil penalties, for consumer harm," Racine said in a statement.
"When a company is caught stealing from its workers, it is not enough for the company to repay the amount stolen. Stealing from workers is theft, and significant penalties are necessary to strongly disincentivize this unlawful conduct."
Amazon did not immediately provide a comment.
In 2021 the company disagreed that the way it reported pay to drivers was unclear. "We added additional clarity in 2019 and are pleased to put this matter behind us," an Amazon spokeswoman said at the time.
(Reporting by David Shepardson; Editing by Richard Chang)
Last year under a settlement with the U.S. Federal Trade Commission, Amazon paid $61.7 million to more than 140,000 drivers.
Amazon has "thus far escaped appropriate accountability, including any civil penalties, for consumer harm," Racine said in a statement.
"When a company is caught stealing from its workers, it is not enough for the company to repay the amount stolen. Stealing from workers is theft, and significant penalties are necessary to strongly disincentivize this unlawful conduct."
Amazon did not immediately provide a comment.
In 2021 the company disagreed that the way it reported pay to drivers was unclear. "We added additional clarity in 2019 and are pleased to put this matter behind us," an Amazon spokeswoman said at the time.
(Reporting by David Shepardson; Editing by Richard Chang)
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