Walmart Agrees to $100 Million Settlement Over Spark Driver Pay Claims

Walmart agreed to pay $100 million to resolve a Federal Trade Commission complaint that accused the company of misleading independent delivery drivers who used its Spark Driver app. The FTC filed the complaint on February 26, 2026 and was joined by the attorneys general of Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin; the action was filed in federal court in California.

Regulators say the Spark app showed drivers an "initial offer card" listing expected earnings - base pay plus tip - number of stops, estimated distance, and a delivery time limit, but that those displayed earnings were inflated or misleading. The complaint alleges those practices dated back to at least 2021 and left drivers "tens of millions of dollars out of pocket," a phrase used in the filing to describe aggregate losses.

The complaint also alleges Walmart misled customers by claiming that "100% of customer tips" would go to drivers, while the company collected drivers' bank and financial information at the same time, triggering an asserted violation of the Gramm-Leach-Bliley Act in addition to the FTC Act claims. Regulators said the conduct generated thousands of consumer complaints and noted that more than a million different people have made deliveries for Spark since Walmart launched the program in 2018.

Under the proposed consent order, Walmart will pay $100 million total, with up to $79 million earmarked for direct payments to drivers, $11 million to the participating states, and $10 million to the FTC to fund consumer refunds. The Detroit Free Press reported that Michigan drivers are to receive at least $890,000 from the settlement; the BBC noted Walmart had begun making payments to affected people but declined to provide an average payout per driver. Walmart issued a statement saying, "We value the hard work and dedication of the drivers who deliver great service and products to our customers," and said it was improving systems to "ensure fairness and transparency."

The settlement imposes operational limits on Spark. Walmart must implement an earnings verification program, is prohibited from misrepresenting earnings in driver offers, and may not adjust base pay, incentives, or tips after an initial offer is made except when a driver fails to provide service or a customer cancels. Walmart is also prohibited from modifying orders after drivers accept them and must submit annual compliance reports to the FTC for the next 10 years.

Legally, the FTC framed the case as violations of the FTC Act and alleged misuse of drivers' financial information under the Gramm-Leach-Bliley Act; the 11 state attorneys general brought parallel state-law claims. Michigan Attorney General Dana Nessel said, "This settlement ensures that drivers who were swindled out of their tips receive the money they deserve." The FTC will monitor compliance under the consent order while details about how the $79 million will be allocated to individual drivers and the schedule for payouts have not yet been disclosed.