RALEIGH, N.C. (WTVC) — Walmart will pay $100 million to settle allegations that it misled delivery drivers and customers about tips and earnings through its Spark Driver program.
The proposed settlement, filed this week in federal court in California, resolves claims brought by the Federal Trade Commission and a bipartisan group of state attorneys general.
Court documents state Walmart neither admits nor denies the allegations but agreed to the stipulated order to resolve the matter. (Photo by Jessica McGowan/Getty Images)
The Spark Driver program allows customers to order products for home delivery through an app, with independent drivers picking up and delivering those orders from Walmart stores.
The complaint and proposed order claims Walmart showed drivers one estimated payout for a delivery, then later split or changed parts of the order after the driver accepted it. Investigators said drivers sometimes received less than the base pay or tip originally displayed.
The settlement also resolves allegations that Walmart did not always pass along 100 percent of customer tips to drivers, despite representing that it would.
The settlement also resolves allegations that Walmart did not always pass along 100 percent of customer tips to drivers, despite representing that it would.{ } (Photo by Will Newton/Getty Images)
Under the agreement, Walmart will:
- Pay $89 million in nationwide monetary relief, including funds to compensate drivers.
- Pay $11 million to participating states.
- Implement an earnings verification program to ensure drivers are paid the full amount shown when they accept a delivery offer.
- Stop modifying offers after drivers accept them, except in limited circumstances spelled out in the order.
- Submit annual reports to the FTC for 10 years to verify compliance.
Court documents state Walmart neither admits nor denies the allegations but agreed to the stipulated order to resolve the matter.
The FTC and state attorneys general said the case involved misrepresentations about pre-tip amounts, base pay and incentive pay in the Spark Driver program, which has handled hundreds of millions of deliveries nationwide. (AP Photo/Eduardo Munoz Alvarez, File)
The FTC and state attorneys general said the case involved misrepresentations about pre-tip amounts, base pay and incentive pay in the Spark Driver program, which has handled hundreds of millions of deliveries nationwide.
The settlement must still receive final court approval.
Read that proposed settlement below:
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