Jennifer Davenport Sues Amazon Over Alleged Monopsony Power and Poor Working Conditions for Delivery Drivers
New Jersey Attorney General Jennifer Davenport filed a lawsuit against Amazon on Tuesday, alleging the online retailer abuses its market power over third-party delivery contractors. The complaint, filed in federal court, argues that Amazon’s Delivery Service Partner program creates a monopsony where the company exerts outsized influence over labor, leading to lower wages and harsher working conditions for drivers. Davenport claims the tech giant prevents workers from unionizing and restricts contractors from poaching each other's drivers, forcing them to endure invasive surveillance and demanding operational requirements. Amazon spokesperson Steve Kelly defended the company, stating the complaint is not grounded in fact. Kelly argued that delivery partners are independent business owners who maintain control over their own hiring and fleet management. While the state seeks damages and a change in behavior, Amazon maintains that its drivers are free to choose their employers. This marks the first lawsuit against the company filed under the current administration in New Jersey.