Walmart agrees to $100M settlement over deceptive pay practices in Spark Driver program

Published: Thursday, February 26, 2026 at 4:37 pm

Walmart to Pay $100 Million to Settle FTC Lawsuit Over Driver Pay Practices

Walmart has reached a $100 million settlement with the Federal Trade Commission (FTC) to resolve a lawsuit concerning deceptive pay practices within its Spark Driver program. The program utilizes gig workers to deliver online orders. The FTC alleged that Walmart misled drivers about their potential earnings, including base pay and tip amounts. The retailer was also accused of deceiving customers by stating that drivers received 100% of their tips, when this was not always the case.

The FTC's original complaint was supported by multiple states. The lawsuit focused on practices dating back to 2021. It alleged that Walmart frequently split customer orders between drivers, leading to tip splitting, while customers were led to believe a single driver received the full tip. In batch orders, Walmart reportedly removed tips from some orders without informing the drivers. Furthermore, the company allegedly promised tips to drivers before they accepted orders, but then failed to collect the tip from the customer, leaving the driver without payment.

The lawsuit also addressed reductions in drivers' base pay after they had accepted an offer, as well as misrepresented incentives. These practices allegedly resulted in drivers losing millions of dollars in promised earnings and generated thousands of consumer complaints.

As part of the settlement, Walmart is required to implement an earnings verification program to ensure drivers receive the earnings and tips they were promised. The company is also prohibited from adjusting base pay, incentives, or tips after the initial offer, except in cases where the driver fails to provide the service or a customer cancels. Additionally, Walmart is banned from misrepresenting earnings in future driver offers.

BNN's Perspective:

This settlement highlights the importance of transparency and ethical practices in the gig economy. While Walmart's Spark Driver program offers convenience for consumers, it is crucial that gig workers are treated fairly and receive accurate information about their compensation. This settlement sends a clear message that companies must be held accountable for misleading practices that exploit workers.

Keywords: Walmart, FTC, Spark Driver, settlement, deceptive pay, gig workers, tips, earnings, lawsuit, consumer complaints, earnings verification, base pay, incentives, labor market

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