Walmart settles with FTC for $100 million over claims of delivery driver pay deception
(CN) — Walmart agreed to a $100 million settlement over claims it deceived delivery drivers out of tens of millions of dollars by misrepresenting how much drivers can earn, the Federal Trade Commission announced Thursday.
The FTC and 11 attorneys general accused Walmart of making false representations about how much drivers who work for the company’s delivery service Spark can earn from pre-tips, base pay, and incentive opportunities. They also claim that Walmart misled customers about how much of their tips drivers receive.
“Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms.” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement. “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.”
Customers can use the Spark delivery service to have products delivered same-day to their home from a local Walmart store.
In the complaint, filed in the Northern District of California, the FTC and attorneys general claim that Walmart frequently deceived drivers about the amount of tips they would receive from an order, including not telling workers when a customer’s order and tip would be split between multiple drivers, as well as telling drivers they would receive a tip, but failing to collect it from the customer.
https://www.courthousenews.com/walmart-settles-with-ftc-for-100-million-over-claims-of-delivery-driver-pay-deception/