Pennsylvania’s Drivers will Receive up to Approximately $1.4 Million
HARRISBURG – Attorney General Dave Sunday, along with a bipartisan group of Attorneys General and the Federal Trade Commission (FTC), reached a $100 million multistate settlement with Walmart regarding allegations that the company deceived customers and drivers who participated in its Spark Driver Program.
Launched in 2018, through Walmart’s Spark Driver Program, customers ordered Walmart products for home delivery. People also signed up to be drivers. Nearly one million drivers nationwide made more than 272 million deliveries through the program.
The settlement resolves allegations that Walmart misrepresented pre-tip amounts, base pay, and incentive pay to drivers. While Walmart showed one offer to the driver, they would split or change parts of the order after the driver accepted the offer, causing the driver to receive less than initially advertised.
Walmart will pay drivers in Pennsylvania approximately $1,416,635, which may have been lost due to Walmart’s alleged actions.
“Walmart was aware almost immediately of issues with the program, and drivers being paid less than face value, yet did nothing to remedy the situation,” Attorney General Sunday said. “Time and time again, Spark drivers did not receive tips they were entitled to — this settlement goes a long way to making those harmed Pennsylvanians whole.”
Walmart also failed to pay drivers for completing incentives by not disclosing the full incentive requirements. Additionally, Walmart allegedly deceived customers into thinking that 100 percent of tip would go to drivers when, in fact, the company did not always pass on the full tips — and sometimes made no tip payments.
As part of the $100 million judgement included in the settlement, Walmart will pay or already has paid, up to $79 million directly to drivers. In addition, the company is paying a total of $11 million to the states and an additional $10 million to the FTC, which will be used to provide refunds to consumers.
Walmart will also have to operate an earnings verification program and submit an annual report to the FTC for the next 10 years to make sure drivers are being paid what they were promised, and the company is prohibited from modifying orders after a driver accepts them or misrepresenting how much a driver will earn from an offer.
Attorney General Sunday is joined in reaching this settlement by the FTC, the Attorneys General of Arizona, Colorado, Illinois, Michigan, North Carolina, Oklahoma, South Carolina, Utah, Wisconsin, and the District Attorney of Alameda County, California.
A copy of the proposed settlement is available HERE.
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