New Jersey sues Amazon over alleged abuse of delivery contractor power

New Jersey’s attorney general, Jennifer Davenport, has launched an antitrust action against Amazon, accusing the e-commerce giant of exploiting its dominant buyer role to depress wages and degrade conditions for drivers in its Delivery Service Partner (DSP) network. The suit characterizes Amazon as a monopsonist that restricts unionization, controls hiring, and employs surveillance tools such as cameras, AI and drones to monitor contractors.

According to the complaint, drivers earn less than peers at the U.S. Postal Service, UPS and FedEx, and workers supportive of unions have faced termination or rejection by other DSPs. Amazon’s spokesperson, Steve Kelly, rejected the allegations, insisting DSPs are independent operators who manage their own hiring and routes, and that the majority of deliveries are completed on time. He also noted that the attorney general’s office did not discuss the claims with Amazon before filing. This is the first state-level monopsony complaint, building on earlier legal challenges to Amazon’s driver programs, including a settlement over a separate tip-theft investigation involving the Flex service.