A Spark of Trouble: Walmart Hit With $100M Judgment over Gig Program

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  • The FTC and 11 states have reached a settlement with Walmart to resolve allegations that the company deceived delivery drivers and consumers in violation of the FTC Act, Gramm-Leach-Bliley Act, and state consumer protection laws.
  • According to the complaint, Walmart allegedly deceived drivers in its “Spark Driver” gig program by showing inflated base pay and tip estimates while failing to disclose that it would reduce pay when “batched” orders were modified or split and that advertised tips were not preauthorized and could fail.
  • The coalition further alleged that the company misrepresented incentive opportunities by failing to disclose key conditions and by frequently not paying incentives even when drivers completed the requirements, and also misled customers by claiming “100% of tips go to the driver” while in some instances charging tips that drivers did not receive.
  • Under the terms of the proposed order, Walmart will pay a $100 million judgment—including $89 million in nationwide monetary relief (including driver redress) and $11 million to the states— and must implement a 10-year earnings verification program and annual reporting, among other relief.
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