The United States retail giant Walmart has agreed to pay $100 million following an investigation by the Federal Trade Commission (FTC) and attorneys general from 11 states over deceptive payment practices in its home delivery platform, Spark.
Authorities stated that the company allegedly presented inflated figures regarding base pay and tips, while also assuring drivers that 100% of customer tips would go directly to them. In several cases, however, those tips were split among multiple drivers without prior notice.
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As part of the settlement, Walmart must implement a technological system that allows drivers to verify their earnings and tips in real time, undergo periodic audits, and ensure greater transparency in its payment structure.
The Spark program, launched in 2018, has played a major role in boosting the company’s e-commerce growth. However, it has also faced scrutiny over potentially unfair practices affecting independent contractors who rely on those earnings.
What changes must Walmart make to avoid future penalties?
The company must strengthen payment transparency, allow drivers to verify each amount they receive, and comply with new rules preventing payment adjustments after a delivery has been accepted.
