United States of America: Reached settlement in New York Attorney General investigation into Drizly for alleged misleading allocation of tips

Description

Reached settlement in New York Attorney General investigation into Drizly for alleged misleading allocation of tips

On 17 December 2024, the New York Office of the Attorney General (OAG) announced that it had reached a settlement in its investigation of Drizy, an online alcohol delivery platform, over alleged misleading communications to customers concerning allocations of tips. The OAG found that Drizly actively encouraged customers to tip delivery workers on the belief these tips would be received by the workers. However, in instances where stores employed their own delivery workers, the tips instead went to store owners, who would then decide how the tips would be distributed. OAG determined this to be a misleading practice and ordered Drizy to pay USD 4 million in restitution to the impacted delivery workers.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
platform intermediary: other
Implementation Level
subnational
Government Branch
executive
Government Body
other regulatory body

Complete timeline of this policy change

Hide details
2024-12-17
in force

On 17 December 2024, the New York Office of the Attorney General (OAG) announced that it had reache…