"In a complaint filed in California federal court, the consumer protection agency said the company misled drivers about how it calculated their base pay, tips and special incentive earnings opportunities. The company also didn't tell customers that tips wouldn't be fully paid to the person who made their delivery, the lawsuit alleges."
"Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms, Christopher Mufarrige, the head of the FTC's Bureau of Consumer Protection, said in a statement."
"Walmart's e-commerce business has been among the engines of growth in recent years, helping catapult the company's market capitalization to $1 trillion. While the retailer has long sought to broaden its digital footprint, that effort began hitting strides during the pandemic when households turned to online delivery for convenience."
Walmart agreed to a $100 million settlement with the Federal Trade Commission and eleven states for allegedly misleading Spark delivery drivers about pay calculations, tips, and earnings opportunities. The company misrepresented how base pay, tips, and incentive earnings were calculated, and failed to disclose that customer tips wouldn't be fully paid to drivers. Walmart has issued payments to affected drivers and continues making additional payments. The settlement highlights concerns about labor market transparency and fair compensation practices. Walmart's e-commerce operations, including Spark delivery services, have grown significantly, with online sales exceeding $150 billion last year as the company expands its digital delivery offerings.
#ftc-settlement #gig-economy-labor-practices #wage-misrepresentation #e-commerce-delivery-services #consumer-protection
Read at www.mercurynews.com
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