Walmart has agreed to a $100 million judgment to resolve claims by the U.S. Federal Trade Commission that the retailer misrepresented delivery earnings, the FTC said on Thursday. The agency, acting together with 11 states, alleged that Walmart provided misleading information that resulted in delivery drivers losing tens of millions of dollars in earnings.
According to the FTC's statement, the complaint centers on Walmart's Spark Driver delivery program. Regulators contend Walmart told customers that all tips would go to drivers, while simultaneously showing drivers inflated base pay and tip amounts. Those disclosures formed the basis of the allegation that drivers were deceived about the compensation they could expect.
The settlement requires Walmart to pay the $100 million judgment and prohibits the company from making further misrepresentations about earnings in delivery offers it makes to Spark drivers. The FTC emphasized the importance of accurate pay information for functioning labor markets, quoting Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection: “Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms.”
The FTC's announcement reiterated that protecting workers is a top priority and urged companies that provide gig work to be transparent and accurate in their representations, as well as to put in place strong compliance systems. The agency said the action was taken to address harms caused by the alleged misrepresentations and to help ensure clearer disclosures going forward.
Walmart did not immediately respond to a request for comment.
Context and implications
While the FTC's statement focuses on the alleged harm to drivers and the accuracy of earnings information, the settlement also carries an explicit prohibition on Walmart repeating the challenged types of earnings representations in its delivery offers. The agency's remarks highlight a regulatory approach that prioritizes transparent pay disclosures in platforms and programs that rely on gig workers.
This enforcement action was brought jointly with 11 state authorities, reflecting a coordinated regulatory posture. The settlement's financial and compliance provisions are intended to redress the alleged shortfalls in how pay was presented to both customers and drivers involved with the Spark Driver program.
Takeaway
The FTC's settlement with Walmart centers on alleged deceptive statements about tips and pay in the Spark Driver delivery program. It includes a $100 million judgment and a ban on future misleading earnings representations, underscoring the agency's focus on transparency in gig-work compensation.