Overview
- The FTC, joined by 11 states, alleged since 2021 that Walmart misled drivers on base pay, incentives and tips and misled customers about full tip pass-through, costing drivers tens of millions.
- Under the settlement, Walmart must implement an earnings verification program to ensure Spark drivers receive the pay and tips displayed in offers.
- Walmart is prohibited from reducing base pay, incentives or tips after an offer is accepted, except when a driver does not complete the service or a customer cancels.
- The complaint detailed practices including splitting orders that diluted tips, removing tips from some batch orders without informing drivers, failing to collect promised tips and cutting base pay after acceptance.
- Walmart said it has issued payments to affected drivers and is updating procedures to improve fairness and transparency.