Walmart to Pay $100M to Settle FTC Allegations Over Delivery Driver Pay

Retailer accused of deceiving drivers about base pay, incentives and tips.

Published on Feb. 26, 2026

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Walmart Inc. has agreed to pay $100 million to settle allegations from the U.S. Federal Trade Commission that the retailer caused delivery drivers in its Spark crowdsourced gig program to lose tens of millions of dollars' worth of earnings by deceiving them about the base pay, incentive pay and tips they could make. As part of the settlement, Walmart is required to implement an earnings verification program to ensure drivers are paid the promised amounts.

Why it matters

This case highlights ongoing concerns about transparency and fairness in the gig economy, where workers often lack protections and can be vulnerable to deceptive practices around pay and earnings. The FTC settlement aims to hold Walmart accountable and ensure drivers in its delivery program are properly compensated going forward.

The details

The FTC, joined by 11 states, alleged that Walmart showed Spark delivery drivers inflated base pay and tip amounts, and also deceived customers by falsely claiming all tips would go to drivers. As part of the $100 million settlement, Walmart must implement an earnings verification program to guarantee drivers receive the promised pay and tips.

  • 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.

U.S. Federal Trade Commission

An independent agency of the United States government that enforces civil antitrust law and promotes consumer protection.

Spark

Walmart's crowdsourced gig driver delivery program.

Christopher Mufarrige

Director of the FTC's Bureau of Consumer Protection.

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What they’re saying

“Labor markets cannot function efficiently without truthful and nonmisleading information about earnings and other material terms.”

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

“We value the hard work and dedication of the drivers who deliver great service and products to our customers. We are continuously improving procedures to ensure fairness and transparency for drivers.”

— Walmart (Walmart statement)

What’s next

Walmart must implement the earnings verification program required by the FTC settlement to ensure delivery drivers are properly compensated.

The takeaway

This case highlights the ongoing challenges of ensuring fairness and transparency in the gig economy, where workers can be vulnerable to deceptive practices around pay and earnings. The FTC settlement aims to hold Walmart accountable and set a precedent for other companies to be more transparent about worker compensation.