State alleges company suppressed wages and blocked competition
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport has filed an antitrust lawsuit against Amazon, accusing the company of using its dominance over its delivery network to suppress wages, limit competition and impose harsh working conditions on thousands of delivery drivers.
The lawsuit, filed in the U.S. District Court for the District of New Jersey, alleges Amazon unlawfully maintains what is known as monopsony power—a dominant position as a buyer of labor—in the market for Delivery Service Partner (DSP) drivers.
According to the complaint, Amazon restricts competition by preventing companies within its DSP delivery network from hiring one another’s drivers, discouraging unionization and tightly controlling how delivery businesses operate.
The Attorney General’s Office alleges Amazon’s practices have resulted in artificially low wages and more difficult working conditions for thousands of New Jersey drivers.
“Today, my office is acting to stand up for thousands of New Jersey delivery drivers who are being exploited every day by one of the world’s biggest, richest corporations,” Davenport said in a statement.
Amazon launched its Delivery Service Partner program in 2018, describing participating companies as independent businesses. However, the lawsuit alleges Amazon controls key aspects of their operations, including delivery routes, performance standards, uniforms, software and branded delivery vehicles, leaving the companies with little operational independence.
The complaint also alleges Amazon closely monitors drivers through artificial intelligence, in-vehicle cameras and other technology. It further claims the company retaliated against union organizing efforts by reallocating delivery routes and, in one instance, ending a DSP’s work at a facility, resulting in job losses.
State officials also allege Amazon’s delivery expectations have contributed to difficult working conditions, including claims by some drivers that they felt compelled to urinate in bottles to meet delivery quotas.
The lawsuit seeks triple damages for lost compensation allegedly suffered by DSP drivers, along with a court order prohibiting the practices described in the complaint.
According to the Attorney General’s Office, this is the first lawsuit brought by a state alleging unlawful monopsony conduct.
The allegations are contained in a civil complaint and have not been proven in court. Amazon will have the opportunity to respond to the claims through the legal process.
Key Points
- New Jersey has sued Amazon, alleging the company unlawfully suppressed competition for delivery drivers.
- The state claims Amazon’s practices resulted in lower wages and harsher working conditions for DSP drivers.
- The lawsuit seeks monetary damages and a court order blocking the alleged anticompetitive practices.
