Walmart Agrees to $100M Settlement Over Spark Driver Pay Deception

Walmart agreed to a proposed $100 million settlement with the Federal Trade Commission and attorneys general from 11 states over allegations that the company systematically deceived gig workers in its Spark Driver delivery program about their pay, tips, and incentive earnings, the FTC announced in a February 26 press release.

The settlement breaks down as follows: up to $79 million goes directly to drivers nationwide, with the FTC noting that much of that amount has already been paid to affected workers. The remaining $21 million is split between $11 million for the 11 participating states and $10 million to the FTC, which will use those funds to provide refunds to consumers.

The core allegations stretch back to 2021. According to the FTC complaint, Walmart misled drivers about pre-tip amounts customers selected at checkout, misrepresented base pay for specific deliveries, and failed to fully disclose the requirements tied to special incentive earnings. More strikingly, the company allegedly split or modified orders after drivers had already accepted them, resulting in lower pay than the original offer showed. Walmart also told customers that 100 percent of their tips would go to drivers when, according to the complaint, the company did not always pass on the full tips and sometimes kept them entirely. Those practices caused drivers to lose millions of dollars they were promised and generated thousands of consumer complaints.

The Spark Driver program, which Walmart launched in 2018, operates similarly to Uber or Instacart: gig workers, who are not Walmart employees, view delivery offers in an app showing estimated earnings that include base pay and any pre-tip from the customer, then decide whether to accept. The FTC's proposed consent order covers all individuals in the United States and its territories who accepted an offer to shop for or deliver goods through the program.

"Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms," said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection.

The states joining the FTC in the complaint are Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin. Michigan Attorney General Dana Nessel, who announced the settlement for her state, said at least $890,000 of the driver restitution fund will flow to Michigan workers. South Carolina Attorney General Alan Wilson, who joined with what his office described as a bipartisan group of attorneys general, said South Carolina drivers will receive approximately $1 million, with nearly another $1 million going to the State of South Carolina.

Beyond the financial terms, the settlement imposes lasting operational requirements on Walmart. The company must implement an earnings verification program to ensure drivers receive the pay and tips they were promised. It is prohibited from modifying an offer for base pay or tips after a driver accepts, with narrow exceptions for situations where the driver fails to complete the service or a customer cancels. Walmart is also banned from misrepresenting earnings in future driver offers. Under terms reported by WYFF, the company must submit an annual report to the FTC for the next 10 years confirming that drivers are being paid what they were promised.

The settlement remains a proposed consent order pending finalization. Some driver payments have reportedly already been made, according to the FTC, though the full distribution schedule and eligibility mechanics for the remaining funds have not been publicly detailed.