The retail giant Walmart will shell out $100 million to resolve federal allegations that the company cost delivery workers millions in lost income, federal regulators announced Thursday.
Federal Trade Commission officials, working alongside attorneys general from 11 states, accused the Arkansas-based retailer of misleading practices within its Spark Driver delivery service. The charges centered on claims that Walmart falsely told customers their full tips would reach drivers while simultaneously displaying exaggerated wage and tip figures to potential delivery workers.
Under the settlement terms, Walmart faces restrictions preventing future misrepresentation of driver compensation within its Spark delivery platform, regulators stated.
“Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said in the statement.
Federal officials emphasized their commitment to worker protection and urged businesses in the gig economy sector to maintain transparency in their employment practices while establishing strong oversight measures.
Walmart representatives had not provided a response to media inquiries by press time.
