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flag Amazon pays $3.95 million to settle claims it misled customers about delivery tip usage.

flag Amazon will pay $3.95 million to settle a lawsuit alleging it misled customers about where delivery tips went. flag The District of Columbia Attorney General accused Amazon of not disclosing that tips were used to subsidize labor costs instead of going directly to drivers. flag Amazon denies the allegations and did not admit to wrongdoing. flag As part of the settlement, Amazon must disclose how tips impact driver earnings on its website and app.

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