HARRISBURG, PA — Walmart will pay $100 million to resolve allegations that it misled drivers and customers participating in its Spark Driver Program, Pennsylvania Attorney General Dave Sunday and the Federal Trade Commission announced.
The multistate settlement, filed in federal court, resolves claims that Walmart misrepresented earnings, tips and incentive payments to drivers using the delivery platform.
The Spark Driver Program, launched in 2018, allows customers to order Walmart products for home delivery and contracts with independent drivers to fulfill those orders.
According to the stipulated order filed in U.S. District Court for the Northern District of California , Walmart neither admits nor denies the allegations but agreed to monetary payments and long-term compliance requirements.
The complaint alleged that Walmart showed drivers certain earnings amounts in initial offers, then reduced or altered payments after drivers accepted deliveries. The settlement also addresses allegations that customers were led to believe 100 percent of tips would go to drivers.
Under the agreement, Walmart will pay $89 million in nationwide monetary relief and $11 million to participating states, including Pennsylvania.
Pennsylvania drivers are expected to receive approximately $1,416,635 in restitution tied to alleged underpayments.
As part of the order, Walmart must establish and fund a Driver Fund to compensate drivers for certain earnings or incentive shortfalls between January 1, 2021 and the effective date of the order. The company must also operate an earnings verification program for at least 10 years to ensure drivers are paid the amounts shown in initial offer cards.
The order prohibits Walmart from modifying delivery offers after acceptance except under limited circumstances and bars misrepresentations about estimated earnings, trip details and incentives.
Walmart must also submit annual compliance reports to the FTC and maintain detailed records related to driver compensation.
Attorney General Sunday said the settlement aims to compensate affected drivers in Pennsylvania and improve oversight of the program moving forward.
The settlement was reached in coordination with the FTC and attorneys general from Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, South Carolina, Utah and Wisconsin.
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