NJ antitrust suit accuses Amazon of unlawfully wielding power over delivery contractors

Core Impact Points

• Amazon's 'dominant buyer power' is alleged to lead to lower wages and worse working conditions for delivery contractors and their workers.
• The lawsuit claims Amazon prevents Delivery Service Partner (DSP) drivers from unionizing and limits competition for labor among contractors in the network.
• Amazon's DSP program, launched in 2018, classifies DSPs as independent operators, but the AG's office claims the company exercises significant control over their operations.
• The complaint alleges Amazon monitors drivers using cameras, AI, and drone surveillance, and controls DSPs' hiring practices, including terminating workers who supported union organizing.
• Amazon is accused of being the sole buyer of DSP services, leaving contractors dependent on the company and vulnerable to its demands.
• The lawsuit claims DSP drivers earn significantly less than those working for the US Postal Service, UPS, and FedEx.