Walmart has agreed to pay $100 million to settle allegations brought by the Federal Trade Commission over claims that the retailer misled delivery drivers about earnings potential in its Spark gig platform.

The settlement resolves accusations that Walmart inflated representations of base pay, incentive bonuses, and customer tips, causing drivers to lose tens of millions of dollars in expected income.

Allegations Over Base Pay and Tips

The FTC, joined by 11 states including California, Illinois, Pennsylvania, and North Carolina, alleged that Walmart provided misleading information to drivers participating in its Spark crowdsourced delivery program.

According to regulators, drivers were shown inflated projections for base pay and incentive compensation. In addition, the FTC alleged that Walmart misled customers by stating that all tips would go directly to drivers when, in some instances, that did not occur as represented.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that labor markets depend on accurate and non-misleading earnings information, emphasizing the broader regulatory focus on transparency in gig-economy platforms.

Gig Economy Under Heightened Scrutiny

The case reflects increasing regulatory attention toward gig-based delivery services, where earnings structures often combine base compensation, incentives, and customer tips.

For platforms like Spark, transparency around pay calculations is critical, as drivers make participation decisions based on projected income. Any discrepancy between advertised and actual earnings can materially affect labor supply and retention.

Walmart’s Spark program competes in a landscape that includes food delivery and last-mile logistics providers relying heavily on flexible contractor networks.

Financial and Strategic Impact

At $100 million, the settlement is financially manageable for Walmart given its scale, but the reputational implications are more significant. The agreement signals stricter enforcement of labor-related disclosures, especially as regulators scrutinize gig platforms for fair compensation practices.

While Walmart did not admit wrongdoing as part of the settlement, the resolution may prompt operational adjustments to ensure clearer pay disclosures and tip allocation transparency moving forward.

As gig models continue expanding across retail and logistics, regulatory oversight appears poised to intensify — particularly where compensation clarity intersects with consumer and worker protections.