- The Federal Trade Commission alleged that Walmart inflated promised pay and tips for Spark drivers.
- Walmart allegedly lowered pay when modifying “batched” delivery offers without properly notifying drivers.
- The settlement seeks to ensure that Walmart is prohibited from changing pay terms after an offer is accepted, except in limited circumstances.
Walmart (WMT) has agreed to a $100 million settlement to resolve allegations from the Federal Trade Commission and 11 states that it misled drivers participating in its Spark Driver delivery program about their earnings.
According to a statement on Thursday, the FTC alleged that Walmart inflated promised pay and tips for Spark drivers while falsely telling customers that 100% of tips would go directly to drivers.
The complaint was filed in the U.S. District Court for the Northern District of California.
Walmart Cost Delivery Drivers ‘Tens Of Millions Of Dollars’
The notice alleges Walmart misled delivery drivers about base pay, bonuses, and tips, costing them tens of millions of dollars in lost earnings. According to the complaint, Walmart failed to clearly disclose that customer tips were not preauthorized and could be reduced or cancelled.
The company also allegedly lowered pay when modifying “batched” delivery offers without properly notifying drivers. Additionally, Walmart was accused of misrepresenting incentive programs by not fully explaining the requirements needed to qualify for bonus payments.
The regulator further alleged that despite promising customers that “100% of tips go to the driver,” the company did not always pass along the full tip amounts or issue refunds.
Settlement To Prohibit Walmart From Changing Terms Of Pay
Under the proposed settlement, Walmart must implement an earnings verification system to ensure drivers receive the pay and tips they are promised. The company is also prohibited from changing pay terms after an offer is accepted, except in limited circumstances, and from misrepresenting earnings information in the future.
Last June, Walmart agreed to pay $10 million to settle an FTC lawsuit alleging it ignored fraud tied to its money transfer services.
Retail sentiment on Stocktwits turned ‘bearish’ from ‘bullish’ a day earlier. WMT shares traded 1% lower at the time of writing, having gained around 12% so far in 2026.
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