Square will pay $2.2 million to settle lawsuit alleging Caviar’s tipping option was fake

Square has agreed to pay $2.2 million to settle a class-action lawsuit which claimed that the company collected tips from customers and didn't hand them over to its Caviar food delivery drivers. Every customer in California who paid Caviar between January 20th, 2012 to August 31th, 2015 has been notified about the settlement, as TechCrunch reports.

The lawsuit was filed in 2016 by Spencer Janssen in California. It says that customers were made to think that the 18 percent "gratuity" charge on each Caviar order would go to the driver, but that "this representation is false." The complaint alleges that, "No portion of this 'gratuity' was provided to the delivery drivers."

Square has denied the allegations, stating that drivers knew how...

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