Walmart agrees to pay $100 million to settle allegations that it deceived delivery drivers about pay

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.

The case, brought by the Federal Trade Commission and 11 states, accused the retailer of misleading workers about the base pay, incentive pay and tips they could earn, the agency said in a press release on Thursday.

A Walmart spokesperson told CBS News that it has issued payments to impacted workers and will continue to make payments “as appropriate.”

FTC allegations

The FTC’s complaint alleges that Walmart made false claims to workers who are part of its Spark Delivery network since 2021.

The Spark Program, launched in 2018, allows gig workers to sign up to make deliveries for Walmart. Spark drivers can also perform tasks for other retailers, such as Home Depot and 1-800-Flowers.

The FTC’s complaint also alleges that Walmart deceived customers by falsely claiming that 100% of customer tips would actually go to drivers.

The FTC claims Walmart was aware of these issues but did nothing to address them.