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Srinivasa Reddy Kandi: Walmart Settles $100M Lawsuit Over Deceptive Pay Practices in Spark Driver Program

February, 27, 2026-04:42

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Walmart Settles $100M Lawsuit Over Deceptive Pay Practices in Spark Driver Program:

Walmart has agreed to a $100 million settlement in response to a lawsuit filed by the Federal Trade Commission (FTC) regarding deceptive pay practices in its Spark Driver program. This service, which relies on gig workers to deliver online orders from local stores, was accused of misleading drivers about their base pay and tips.

The FTC's complaint, supported by several states including Arizona, California, and Pennsylvania, alleged that Walmart misled both drivers and customers. For example, Walmart falsely stated that drivers would receive 100% of tips, when in fact, some of the tips were withheld or shared between drivers without proper disclosure.

The lawsuit also detailed how Walmart split customer orders between drivers, leading to tip splitting, despite assuring customers that a single driver would receive the full tip. In some cases, Walmart removed tips from orders in batch deliveries without notifying the drivers, and promised tips that were never collected from customers, leaving drivers without compensation. Additionally, Walmart was accused of reducing drivers' base pay after they had accepted offers and misrepresenting incentives that could have boosted drivers’ earnings.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi