US retail giant Walmart has agreed to a $100m judgment to resolve allegations it misled ‘Spark Driver’ delivery workers on earnings.
The US Federal Trade Commission (FTC) and 11 states alleged Walmart caused drivers to lose tens of millions of dollars by overstating expected base pay, tips and incentive payments in delivery “offers” shown in the Spark Driver app.
Regulators also claimed Walmart misled customers by stating that “100% of tips go to the driver”.
According to the complaint, Walmart did not disclose that advertised tips were not preauthorised and could be reduced or fail.
It also did not inform drivers that tips might be shared when deliveries were assigned to multiple drivers.
The complaint further alleged the company cut base pay and/or tips when altering “batched” multi-order deliveries without properly informing drivers, or, in some cases, only after completion.
The FTC also alleged Walmart misrepresented the conditions for incentive payments, including referral bonuses tied to specific zones or stores, and in some cases failed to pay incentives even when drivers met the criteria.
The agency said these practices violated the FTC Act and the Gramm-Leach-Bliley Act by collecting drivers’ bank and financial information while misrepresenting expected earnings.
It added that the conduct also breached the laws of participating jurisdictions, which include Arizona, California, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah and Wisconsin.
Under a proposed stipulated final order filed in the US District Court for the Northern District of California, Walmart must establish an earnings verification programme to ensure drivers receive promised pay and tips.
The company is also barred from changing offered pay or tips after acceptance except in limited circumstances, and from misrepresenting delivery-offer earnings or related details.
The FTC said the settlement is consistent with its Joint Labor Task Force launched in February 2025 to address deceptive and unfair labour-market practices.
FTC Bureau of Consumer Protection director Christopher Mufarrige said: “Labour markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms.
“Today’s settlement reflects the Trump-Vance FTC’s focus on ensuring a healthy labour market for American workers, which is critical to the nation’s success.”
Retail Insight Network has reached out to Walmart for comment on the matter.
“Walmart faces $100m judgment over driver pay allegations” was originally created and published by Retail Insight Network, a GlobalData owned brand.
