Walmart, Inc. has reached a $100 million judgment to settle allegations from the Federal Trade Commission (FTC) and 11 states regarding misleading information provided to delivery drivers in its Spark Driver delivery program. The FTC claimed that Walmart misrepresented the base pay, incentive pay, and tips that drivers could earn, leading to significant financial losses for them.

The complaint, supported by states including Arizona, California, and Michigan, accused Walmart of inflating earnings figures and falsely assuring drivers that 100% of customer tips would go directly to them. FTC Director Christopher Mufarrige emphasized the importance of truthful information in labor markets, stating that the settlement reflects the agency's commitment to protecting American workers.

This action is part of the FTC's broader initiative to combat deceptive labor practices, as outlined by Chairman Andrew N. Ferguson's Joint Labor Task Force. The task force aims to address unfair labor-market practices that harm workers, leveraging expertise from various FTC bureaus.

The Spark Driver service allows gig workers to deliver goods, with drivers making decisions based on Walmart's earnings claims. The FTC's complaint detailed several deceptive practices, including misleading drivers about tip amounts, base pay adjustments, and incentive pay conditions. Walmart's failure to disclose critical information about earnings led to drivers not receiving the amounts they were promised.

As part of the settlement, Walmart is required to implement an earnings verification program, restrict modifications to pay offers, and refrain from misrepresenting earnings information. The FTC's complaint and proposed order were filed in the U.S. District Court for the Northern District of California, with a unanimous vote from the Commission to proceed.