Overview
- The FTC, joined by a bipartisan group of 11 states, alleged Walmart misled Spark drivers about base pay, incentives and tips, and told customers tips would fully go to drivers when that was not always true.
- The settlement was filed in federal court in the Northern District of California and requires final judicial approval before it takes full effect.
- Under the proposed order, Walmart must implement an earnings verification program, stop changing offers after drivers accept them except in limited cases, submit annual compliance reports to the FTC for 10 years, and avoid future misrepresentations.
- Walmart said it has issued payments to affected drivers and will continue to make additional payments as appropriate while updating procedures for fairness and transparency.
- Relief will compensate drivers and fund refunds to customers and states, with announced allocations including about $1.4 million for drivers in Pennsylvania and $2 million for drivers in North Carolina plus roughly $10 million in multi-state customer refunds.