Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Walmart to pay $100 million to settle charges of deceptive earning claims, (Feb 26, 2026)

By Jody Coultas, J.D.

The FTC and several states had alleged that Walmart inflated the base pay and tips drivers could earn.

Walmart, Inc. has agreed to pay $100 million to settle a lawsuit filed by the FTC and 11 states alleging the company deceived its delivery drivers about the base pay, incentive pay, and tips they could earn, the FTC announced. The FTC had alleged that these practices violated the FTC Act and the Gramm-Leach-Bliley Act (FTC v. Walmart, Inc., No. 3:26-cv-01655, (N.D. Cal. Feb. 26, 2026)).

Walmart owns and operates a merchandise delivery service called Spark Driver. The delivery service is generally same-day service that requires the drivers to pick up goods from a local store or warehouse and deliver directly to the customer’s home. Consumers seeking gig-work in all 50 states can use the Spark app to find jobs that include shopping, delivery, and returns. Each job in the Spark app is advertised with the base pay a driver can receive for each job. The app also stated that drivers would receive 100& of the tip paid by the customer.

The FTC, joined by Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah and Wisconsin, alleged that Walmart inflated the base pay and tip amounts available.

Claims. As to the pre-tips that it promised drivers, Walmart allegedly misrepresented the amount drivers can expect to receive. When Walmart splits an order among multiple drivers, the drivers are not told about the split and are not told that the customer’s tip will be split. Also, in instances where Walmart combines multiple orders that drivers see as a single “batched” offer, Walmart frequently tells Drivers that they will receive tips that, in fact, they do not receive because Walmart removes orders and associated tips from the accepted Offer, often without notifying the Drivers. Walmart also allegedly failed to collect tips from customers and drivers only learned there would be no tip after the order was delivered.

The complaint also alleged that Walmart misrepresents drivers’ base pay. When Walmart modifies or removes a delivery from a “batched” offer, Walmart allegedly either entirely failed to notify drivers of their reduced base pay or told drivers about the reduced earnings after they have accepted the original offer.

Walmart also allegedly misrepresents extra earning opportunities called “Incentives.” Incentives allow drivers to earn additional money by completing certain tasks (e.g., refer a new Driver to Spark to earn an extra $100, or complete ten trips in the next seven days to earn an extra $30). Walmart allegedly misrepresented the conditions drivers must satisfy to complete these Incentives and regularly failed to pay drivers for Incentives they have completed.

Finally, Walmart made misleading representations to its customers regarding the tips they choose to leave for drivers.

Proposed order. In addition to paying $100 million, Walmart must operate an earnings verification program that ensures drivers are paid the amount of money shown in the Initial Offer Card upon completion of the offer and are paid for any Incentives that they have completed. Walmart must assess and document, in a centralized location and at least annually, all of the instances in which a driver was not paid the amount of money shown in the Initial Offer Card despite completion of that offer.

Further, Walmart will be prohibited from modifying an offer for base and incentive pay or tips after the initial offer except under limited circumstances such as when the driver fails to provide the required service or the customer cancels an order. Finally, Walmart would be barred from misrepresenting the earnings and other information included in the delivery offers it makes to Spark drivers.

Amazon drivers. In 2021, the FTC reached a settlement with Amazon settling similar charges that it had failed to pay its Flex drivers the full amount of tips they received from customers. The FTC alleged that, in 2016, Amazon reduced salaries and stopped paying drivers the full amount of customer tips. Amazon used the customer tips to make up the difference between the new lower hourly rate and the promised rate. The company allegedly intentionally failed to notify drivers of the changes to its pay plan and allegedly took steps to conceal the changes. Despite the change, Amazon continued to promise drivers and customers that 100 percent of tips would be passed through to drivers. Amazon was required to pay $61,710,583, which was used to compensate drivers (In the Matter of Amazon.com, Inc., FTC File No. 192 3123).

Companies: Walmart, Inc.

News: ConsumerProtection FederalTradeCommissionNews CaliforniaNews