Overview
- The FTC, joined by 11 states, resolved allegations that Walmart misled Spark delivery drivers and customers about base pay, incentives, and tips.
- The $100 million settlement allocates roughly $79 million to drivers, $11 million to participating states, and $10 million to the FTC for customer refunds.
- Regulators say Walmart displayed full tip amounts to multiple drivers, removed tips from some batch orders without notice, and promised tips that were never collected from customers.
- Walmart must verify driver earnings, is barred from changing pay or tips after an offer is accepted except for cancellations or nonperformance, and must avoid misrepresenting earnings while reporting to the FTC for 10 years.
- Walmart says it has begun issuing payments to affected drivers and is continuing to do so, with Pennsylvania drivers set to receive about $1.4 million.