Penalty Amount
$100,000,000
The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.
Walmart must pay a $100 million judgment, implement an earnings verification program to ensure drivers receive promised earnings and tips, is prohibited from modifying delivery offers after initial presentation except in limited circumstances (e.g., driver failure or customer cancellation), and is banned from misrepresenting earnings and other information in delivery offers to Spark drivers.
In-house legal teams should review all vendor, contractor, and gig worker agreements (specifically for delivery or platform-based services) for clauses related to compensation representations, tip allocations, and incentive structures. Key clauses to scrutinize include earnings guarantees, payment calculations, tip pass-through mechanisms, and any financial data handling provisions. Given the GLBA violation, contracts involving the collection or sharing of driver financial information (like bank details for payment) must be assessed for adequate privacy notices and data security safeguards. Changes may be required to implement verified, non-misleading pay calculations, ensure 100% tip pass-through as promised, add explicit financial privacy notices compliant with GLBA, and incorporate audit rights or verification programs to prevent future deceptive practices.
Entity
Walmart, Inc.
Also known as: Walmart
Industry
RetailOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/02/walmart-agrees-100-million-judgment-settle-ftc-states-charges-over-deceptive-earnings-claims-related
WalmartSparkDriverComplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/WalmartSparkDriverComplaint.pdf
WalmartSparkDriver Order
https://www.ftc.gov/system/files/ftc_gov/pdf/WalmartSparkDriver-Order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Walmart, Inc. has agreed to a $100 million judgment to settle allegations from the Federal Trade Commission and 11 states"
"$100 million judgment"
"violated the FTC Act and the Gramm-Leach-Bliley Act"
"The company failed to notify drivers that, unlike the payment for the goods being delivered, the payment for the advertised tip amount had not been preauthorized, and therefore drivers would not receive that amount if the customer was unable to cover the cost of the tip or if the charge otherwise failed."
"Deceiving drivers about the amount of tips they will receive from an order."
$13.0M
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.
The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.