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Walmart to Pay $100M to Settle FTC Allegations Over Delivery Driver Pay
Retailer accused of deceiving customers about tips going to drivers
Published on Feb. 26, 2026
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The U.S. Federal Trade Commission has alleged that Walmart deceived customers by falsely claiming all tips would go to delivery drivers, and that the retailer caused drivers to lose millions in earnings by misrepresenting pay and tip amounts. Walmart has agreed to pay $100 million to settle the allegations and implement an earnings verification program.
Why it matters
This case highlights ongoing concerns about transparency and fair treatment in the gig economy, where many workers lack traditional employee protections. The FTC action aims to ensure delivery companies provide accurate information to both customers and workers.
The details
The FTC, joined by 11 states, alleged that Walmart's crowdsourced gig-driver delivery program called Spark showed drivers inflated base pay and tip amounts, and failed to inform them that tips would be split across multiple drivers on split deliveries. The agency said Walmart deceived customers by falsely claiming all tips would go to drivers.
- Walmart launched its Spark delivery program in 2018.
- The FTC settlement was announced on February 26, 2026.
The players
Walmart Inc.
A major American retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
Federal Trade Commission (FTC)
An independent agency of the United States government that enforces civil antitrust law and promotes consumer protection.
What’s next
As part of the settlement, Walmart is required to implement an earnings verification program to ensure drivers are paid the promised earnings and tips.
The takeaway
This case highlights the need for gig economy companies to provide clear, accurate information to both customers and workers to maintain trust and ensure fair treatment in the rapidly evolving delivery industry.
