Case Overview: Walmart has agreed to a proposed $100 million settlement to resolve allegations brought by the Federal Trade Commission and 11 states that the company misled gig delivery drivers about their expected pay through the Spark Driver program.

Consumers Affected: Current and former Spark Driver program participants who were allegedly deceived about driver compensation

Court: Federal court (jurisdiction pending confirmation)

Walmart Agrees to $100 Million Settlement Over Allegations It Misled Spark Delivery Drivers About Pay

Walmart has reached a proposed $100 million class action settlement to resolve claims that the retail giant deceived drivers participating in its Spark gig delivery program about how much money they would earn. The settlement, if approved, would resolve a joint enforcement action brought by the Federal Trade Commission and 11 state attorneys general.

According to a recent report on the settlement, the allegations center on claims that Walmart misrepresented earnings to drivers who relied on that information when deciding whether to participate in the program.

Drivers Allegedly Received Less Than Promised

The FTC and participating states allege that Walmart made misleading representations to Spark drivers about anticipated pay, leading workers to accept delivery assignments under false pretenses. According to the complaint, drivers were allegedly shown earnings estimates that did not accurately reflect what they would actually be paid once they completed deliveries.

The Spark Driver program operates similarly to other gig delivery platforms, connecting independent contractors with Walmart customers seeking same-day delivery of goods. Drivers typically accept individual delivery orders through a mobile app and are compensated on a per-delivery basis.

The lawsuit alleges that discrepancies between promised and actual compensation left drivers earning less than they had reasonably expected — a concern the FTC argued constituted an unfair or deceptive practice under federal consumer protection law.

A Multi-State Enforcement Action

The involvement of 11 state attorneys general alongside the FTC signals the breadth of the alleged harm. Multi-agency enforcement actions of this nature typically indicate that regulators identified a pattern of conduct affecting workers across multiple jurisdictions, not an isolated incident.

The FTC has the authority to pursue civil penalties and consumer redress for deceptive business practices under the FTC Act. When state attorneys general join such actions, affected individuals in those states may be considered as part of any resulting settlement class.

$100 Million Settlement Proposed — Approval Pending

Walmart has agreed to the proposed $100 million settlement to resolve the matter without admitting wrongdoing, a standard condition in settlements of this kind. The settlement remains subject to court approval, and the specific terms governing how funds will be distributed to affected drivers — including eligibility criteria and individual payment amounts — have not yet been fully detailed in publicly available documents.

Drivers who participated in the Spark program and believe they may have been affected by the alleged pay misrepresentations may be eligible to participate in the settlement, pending court approval. Individual payment amounts, if any, would depend on factors such as the number of valid claims submitted and the terms approved by the court.

Context: Gig Worker Pay Transparency Under Scrutiny

This settlement comes amid growing regulatory attention on how gig economy platforms communicate compensation to workers. The FTC and state regulators have increasingly scrutinized earnings claims made by platforms that rely on independent contractors, arguing that vague or inflated pay projections can constitute deceptive conduct.

Similar enforcement actions have targeted other gig platforms in recent years, with regulators arguing that the independent contractor model — which places financial risk on workers rather than companies — makes accurate pay disclosure especially important.

Walmart launched the Spark Driver program as part of its broader push to compete with Amazon and other e-commerce players in the same-day delivery market. The program has grown substantially, giving Walmart a gig workforce to handle last-mile delivery without the overhead of traditional employment.

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Lawsuit: Federal Trade Commission, et al. v. Walmart Inc.

Case Number: Pending confirmation

Court: Federal court (jurisdiction pending confirmation)

Plaintiffs' Attorney(s): Federal Trade Commission; attorneys general from 11 participating states

Did you work as a Spark Driver and have questions about this settlement? Share your experience in the comments below.

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