NC to receive $2 million in Walmart delivery settlement
RALEIGH, NC (WWAY) — NC Attorney General Jeff Jackson announced a $100 million multistate settlement with Walmart over allegations the company deceived drivers and customers participating in its Spark Driver Program.
Jackson, along with a bipartisan group of attorneys general and the Federal Trade Commission, said North Carolina drivers will receive approximately $2 million in payments tied to the settlement.
“Walmart misled its drivers and its customers so that the company could keep tips and other money that belonged to drivers,” Jackson said. “I’m grateful for the federal government’s partnership on this case to make Walmart pay back millions for North Carolina drivers.”
Walmart has operated the Spark Driver Program since 2018. Customers use the Spark app to order products for home delivery, and drivers sign up through the app to pick up and deliver orders. Delivery offers include an estimate of the driver’s earnings, including base pay and any pre-tip selected by the customer. The company also offers incentive pay for completing deliveries within certain time frames, in specific areas, reaching delivery thresholds, or referring new drivers.
According to the attorney general’s office, nearly 1 million drivers have completed 272 million deliveries nationwide through the program.
The settlement resolves allegations that Walmart misrepresented pre-tip amounts, base pay and incentive pay to drivers. Officials said drivers were sometimes shown one payment offer, but parts of the order were later split or changed after acceptance, resulting in drivers receiving less than the promised base pay or tip. The company was also accused of failing to disclose full incentive requirements and not paying drivers for completing certain incentives.
The lawsuit also alleged Walmart misled customers into believing 100% of their tips would go to drivers, when the company did not always pass along the full tip and in some cases retained the money.
Under the $100 million judgment, Walmart will pay or has already paid up to $79 million directly to drivers. The company will also pay $11 million to participating states and $10 million to the FTC, which will be used to provide refunds to consumers.
As part of the settlement, Walmart must implement an earnings verification program and submit annual reports to the FTC for the next 10 years to ensure drivers are paid as promised. The company is also prohibited from modifying orders after drivers accept them or misrepresenting how much a driver will earn.
