Attorney General Kris Mayes, along with a bipartisan coalition of attorneys general and the Federal Trade Commission (FTC), has reached a $100 million multistate settlement with Walmart. The agreement addresses allegations that Walmart misled both customers and drivers involved in its Spark Driver Program.
“When customers leave a tip, they expect it to reach the worker who earned it. When workers are promised pay, they expect to receive it,” said Attorney General Mayes. “This settlement makes both of those things right — and puts money back in the pockets of the drivers who deserved it all along.”
The Spark Driver program, launched by Walmart in 2018, allows customers to order products for home delivery through the Spark App. Drivers sign up via the app to pick up and deliver items from Walmart stores. Offers made to drivers include estimated earnings based on base pay, customer tips, and potential incentive payments for meeting certain criteria such as completing deliveries within specific timeframes or referring new drivers.
Nearly one million drivers have completed 272 million deliveries nationwide using this system. However, authorities alleged that Walmart misrepresented how much drivers would earn from pre-tips, base pay, and incentives. After accepting an offer shown on the app, some drivers received less than what was initially indicated due to changes or splits in orders by Walmart. The company also failed to clearly disclose full requirements for earning incentives.
Customers were also allegedly misled into believing that their entire tip would go directly to drivers; instead, there were instances where Walmart did not pass on full tips or retained them entirely.
Under the terms of the settlement, Walmart will pay or has already paid up to $79 million directly to affected drivers. Additionally, $11 million will be distributed among participating states and $10 million will go to the FTC. The company is required to implement an earnings verification program and submit annual reports to the FTC for ten years. Walmart is now prohibited from altering orders after driver acceptance or misrepresenting potential driver earnings.
Attorney General Mayes worked alongside attorneys general from Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, Wisconsin, and the FTC in securing this agreement.
Kris Mayes serves as Arizona’s 27th attorney general and is recognized as the first mother to hold this position in state history according to information available on the official website. The Arizona Attorney General’s Office acts as Arizona’s chief legal entity with responsibilities including advocacy for residents statewide and addressing issues such as civil rights violations and elder abuse (source). It also engages in federal lawsuits and supports initiatives like fair housing protections (source).
A copy of the proposed settlement can be accessed online.
