Walmart has agreed to pay $100 million to settle allegations that it misled its delivery drivers about their pay, costing them millions in earnings, the US Federal Trade Commission announced Thursday.
The settlement resolves claims that the retailer deceived workers on base pay, incentive pay, and tips in its Spark Delivery program.
The case, brought by the FTC along with 11 states including California, Arizona, and Pennsylvania, accused Walmart of showing inflated pay amounts to drivers and failing to disclose how tips would be divided when multiple drivers worked on a single order.
According to CBS News, the commission also said Walmart misled customers by claiming that 100% of their tips would go directly to drivers.
"Labor markets cannot function efficiently without truthful and nonmisleading information about earnings and other material terms," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection.
Walmart, based in Bentonville, Arkansas, launched its Spark program in 2018 to allow gig workers to deliver groceries and products from its stores.
Spark drivers can also perform deliveries for other retailers, such as Home Depot and 1-800-Flowers.
Drivers typically accept orders via the Spark app based on the earnings they expect, but the FTC alleges Walmart's app overstated potential pay and tips, sometimes splitting tips without clear disclosure.
Sources from CBS News say that Walmart has agreed to pay $100 million to settle allegations that it deceived its delivery drivers about pay, costing them tens of millions of dollars in earnings. https://t.co/JmMZbg6opI
— WCBI News (@WCBINews4) February 26, 2026
Walmart Faces Multi-State Scrutiny
A Walmart spokesperson told sources that payments have already been issued to impacted drivers and that the company will continue making payments "as appropriate."
The company also emphasized its commitment to fairness, saying, "We are continuously improving procedures to ensure fairness and transparency for drivers."
As part of the settlement, Walmart is required to implement an earnings verification program to make sure drivers receive the pay and tips promised.
The agreement also reinforces compliance with federal and state labor laws regarding truthful wage information.
Walmart's Spark program has been a key part of the retailer's growth strategy, supporting online grocery and product deliveries that contributed to a 27% increase in e-commerce sales during the company's fourth fiscal quarter, AP News reported.
Despite the success in online sales, the dispute highlighted challenges in managing gig worker pay and maintaining transparency.
The 11 states involved in the lawsuit include Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin.
Together with the FTC, they argued that Walmart's actions caused tens of millions of dollars in lost earnings for drivers.
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