Walmart has agreed to pay $100 million to resolve allegations that it misled customers and drivers participating in its Spark delivery program. The settlement, announced by Illinois Attorney General Kwame Raoul, includes more than $1.1 million for Illinois drivers.
The agreement settles claims that Walmart misrepresented pre-tip amounts, base pay, and incentive pay to drivers using the Spark app, which has operated since 2018. Nearly one million drivers have made more than 270 million deliveries nationwide through the program.
According to the allegations, Walmart made offers to drivers through the app but would then split or change parts of the order after a driver accepted, resulting in drivers receiving less than the base pay or full tip originally displayed. The company also allegedly failed to disclose full incentive pay requirements, leaving drivers unaware of what was needed to earn additional compensation until after they were denied payment. Under the settlement, Walmart will pay up to $79 million in restitution, in addition to the $63 million already paid directly to drivers—including $1.1 million to Illinois drivers. The company will also pay a total of $11 million to the states, with approximately $1.1 million going to Illinois, and an additional $10 million to the Federal Trade Commission (FTC). As part of the agreement, Walmart must implement an earnings verification program and submit an annual report to the FTC for the next 10 years. The company is also prohibited from modifying orders after drivers accept them and from misrepresenting driver earnings.
Attorney General Raoul praised the settlement as a win for drivers and consumers.