Walmart Agrees to $100M Settlement Over Deceptive Gig Worker Pay Practices

The retail giant faced allegations of misleading drivers about potential earnings and tips in its Spark delivery program.

Published on Feb. 26, 2026

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Walmart has agreed to pay $100 million to settle a lawsuit from the Federal Trade Commission (FTC) over deceptive pay practices within its Spark Driver service, which uses gig workers to deliver online orders. The retailer was accused of misleading drivers about their potential base pay and tip amounts, and then deceiving customers by saying that 100% of tips went to the drivers, when they did not.

Why it matters

This settlement highlights ongoing concerns about transparency and fairness in the gig economy, where workers often lack protections and can be vulnerable to misleading claims about earnings and compensation. The case underscores the FTC's focus on ensuring accurate information for workers in labor markets.

The details

The lawsuit alleged that Walmart, since 2021, had made false representations about Spark driver earnings, including splitting tips between drivers on batch orders, removing tips without informing drivers, and promising tips that were never collected. Walmart also reduced drivers' base pay after they had accepted offers and misrepresented other incentives.

  • The alleged deceptive practices occurred since 2021.
  • Walmart agreed to the $100 million settlement in February 2026.

The players

Federal Trade Commission (FTC)

The U.S. government agency responsible for protecting consumers and promoting competition.

Walmart

The world's largest company by revenue and a leading retailer, operating the Spark Driver gig worker delivery service.

Christopher Mufarrige

Director of the FTC's Bureau of Consumer Protection, who commented on the settlement.

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What they’re saying

“'Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms. Today's settlement reflects the Trump-Vance FTC's focus on ensuring a healthy labor market for American workers, which is critical to the nation's success.'”

— Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection (TechCrunch)

What’s next

The settlement requires Walmart to implement an earnings verification program to ensure drivers are paid the promised earnings and tips. Walmart is also prohibited from adjusting the base pay, incentives, or tips after the initial offer, except in certain circumstances.

The takeaway

This case highlights the ongoing challenges in the gig economy around worker protections and transparency, and underscores the FTC's efforts to ensure fairness and accuracy in how companies represent earnings and compensation to their workers.