Walmart Misrepresentations to Massachusetts Customers Over Spark Driver Tips

FTC Announces $100 Million Settlement with Walmart Over Alleged Deceptive Earnings Claims to Spark Drivers

Recently, the Federal Trade Commission (FTC) announced that Walmart has agreed to a $100 million judgment to resolve allegations that it misled consumers and gig-economy drivers participating in the company’s Spark Driver delivery program about how much they could earn.

According to the FTC and attorneys general from 11 different states, Walmart allegedly provided misleading information about base pay, tips, and incentive compensation shown to drivers before they accepted delivery assignments. The agency claims these practices caused drivers to lose tens of millions of dollars in expected earnings, including:

• Inflated or unreliable tip estimates: Drivers were allegedly shown tip amounts that were not preauthorized and could later fail or be reduced.
• Reduced pay on “batched” deliveries: When orders were removed from multi-order deliveries, drivers’ pay could be reduced without clear disclosure before the work was completed.
• Misleading incentive offers: Drivers were allegedly promised bonuses or referral incentives without full disclosure of eligibility conditions, and some incentives were allegedly not paid even when conditions were met.
• Consumer tip representations: The FTC also alleged that Walmart told customers that “100% of tips go to the driver,” but in some instances drivers did not receive the full amount collected.

Investigation for Massachusetts Drivers and Consumers

Following the FTC’s announcement, our firm is investigating potential claims on behalf of Massachusetts Spark drivers and consumers who may have been affected by similar alleged misrepresentations involving delivery earnings, tips, or incentives. Individuals who participated in the Spark Driver program or placed orders through Walmart’s delivery platform may have rights under federal and Massachusetts consumer protection laws.

If you have purchased items from Walmart for delivery in Massachusetts in the last three years, or worked as a delivery driver using Walmart's Spark Driver program, and would like to speak to a lawyer confidentially about possible legal remedies, please CONTACT US or email hillary@fairworklaw.com.