"The Federal Trade Commission said on Thursday that Walmart agreed to a $100 million settlement over claims that the big-box retailer told Spark drivers they would earn more in base pay than they actually did. The FTC also said Walmart misled drivers "by falsely claiming that 100% of customer tips would actually go to drivers.""
"In many instances, Walmart either failed to notify drivers at all about the change in base pay and tips or only notified them of the change in their earnings after they completed the delivery, the FTC said in its announcement."
"Part of the proposed settlement includes a "driver fund" that would distribute $16.2 million to Spark drivers whose actual pay was lower than what Walmart promised through the delivery app, according to court documents. The payouts apply to offers Walmart made to drivers as far back as January 1, 2021."
Walmart agreed to a $100 million settlement with the Federal Trade Commission over allegations that it misled Spark delivery drivers about earnings. The company falsely claimed drivers would receive higher base pay than they actually did and promised that 100% of customer tips would go to drivers, which was not true. A $16.2 million driver fund will compensate affected workers whose actual pay fell short of Walmart's promises, covering offers dating back to January 1, 2021. In many cases, Walmart failed to notify drivers about pay and tip changes before or after completing deliveries. Walmart stated it has already begun issuing payments to impacted drivers and is improving procedures for fairness and transparency.
#walmart-settlement #gig-worker-misclassification #ftc-enforcement #delivery-driver-compensation #consumer-protection
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