New Jersey’s attorney general just threw down the gauntlet. The state sued Amazon, accusing the tech giant of abusing its power over delivery contractors and drivers.
The lawsuit targets Amazon’s Delivery Service Partner program, launched in 2018 to outsource deliveries to third-party contractors. New Jersey claims Amazon uses its dominant market position to depress wages and degrade working conditions.
According to the suit, Amazon prevents these Delivery Service Partner (DSP) drivers from unionizing. It also restricts labor competition by controlling hiring and monitoring drivers through cameras and AI technology. The company classifies contractors as independent but tightly controls operations.
Amazon’s grip means DSPs rely on the company as their sole customer. The suit claims drivers earn far less than their counterparts at the US Postal Service, UPS, and FedEx. The state alleges Amazon’s power forces contractors to accept low pay and poor conditions.
Some drivers who supported union efforts were reportedly rejected or fired by other DSPs in Amazon’s network. New Jersey’s attorney general, Jennifer Davenport, argues this shows Amazon’s control extends beyond direct employees to the entire delivery ecosystem.
Amazon’s spokesperson Steve Kelly pushed back, saying, “This complaint is not grounded in fact. DSPs are independent business owners who make their own decisions about hiring, fleet management, and capacity planning.” Kelly added DSPs “choose whether to work with other companies besides Amazon.”
Amazon’s internal Flex program also drew scrutiny. The Federal Trade Commission investigated Flex drivers who lost $61.7 million in stolen tips. Amazon settled the case and paid out the owed tips.
Privacy Battle Over Social Benefit Data
Meanwhile, more than 20 states and the District of Columbia sued the Trump administration to block access to personal data of low-income families. The federal government planned to share sensitive information, including immigration status and Social Security numbers, between agencies and private entities.
The Temporary Assistance for Needy Families program distributes over $16 billion annually to states, D.C., and tribal governments. New York Attorney General Letitia James condemned the move, saying, “Instead of helping families struggling with the rising cost of living, this administration is trying to turn antipoverty programs against the people they’re supposed to serve.”
James also criticized Amazon’s labor practices, stating, “Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions thanks to its overwhelming power in the labor market.”
This legal storm highlights growing tensions over corporate power and government surveillance. Amazon’s delivery model faces fresh scrutiny for its heavy-handed grip on contractors. At the same time, states fight back against federal overreach into private data.
Amazon insists its DSP program empowers small business owners and offers flexibility. But for many drivers and contractors, the reality looks more like a tightly controlled labor market with few alternatives.
Based on
- NJ antitrust suit accuses Amazon of unlawfully wielding power over delivery contractors — engadget.com
- NJ files antitrust suit against Amazon on delivery contractor control — cnbc.com
- New Jersey is suing Amazon, alleging it “unlawfully maintains” power over contract delivery drivers. | The Verge — theverge.com
- Amazon’s bot crackdown is blocking reviews. | The Verge — theverge.com
- States sue to block feds from sharing personal data of millions who receive social service benefits — nbcnews.com
