Corporate Giant Agrees To Pay $100M For Deceiving Gig Workers: FTC

ALAMEDA, CA — Walmart has agreed to a $100 million settlement in a lawsuit that accused the corporate giant of deceiving gig workers, according to the Federal Trade Commission.

Walmart falsely advertised earnings to gig workers using the delivery app Spark Driver, according to the Federal Trade Commission. In some cases, Drivers were offered tips Walmart knew or should have known they would not receive, had their tips withheld and were not informed their pay would be reduced if a batched order — an order where a driver is delivering to more than one customer —was removed from their assignment.

Alameda County District Attorney Ursula Jones Dickson lauded the settlement, saying the “significant resolution” was the result of a collaboration between her office, the FTC and the attorney general’s office.

“As part of the $100 million judgment included in the settlement, Walmart will pay or has already paid up to $79 million directly to drivers,” Jones Dickson said in a press release Thursday. “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 customers.”

As part of the settlement, Walmart will also have to operate an earning verification program and submit an annual report to the FTC for the next 10 years, according to authorities. This, prosecutors say, will ensure that drivers are being paid what they are promised and that companies avoid misrepresenting earnings.

“Gig workers deserve non-misleading and truthful information about what they’ll earn, and customers deserve transparency about where their money goes,” the FTC said in a statement.

The settlement comes less than a year after a California Court ordered Walmart to pay $5.6 million in penalties in a separate lawsuit claiming the company violated state laws by overcharging customers.

The lawsuit, which was settled in August 2025, claimed the company also sold products, such as produce, baked goods, and other prepared items, that weighed less than what was shown on the label.