Walmart Agrees $100 Million FTC Settlement Over Deceptive Spark Driver Earnings Claims – Feb 2026

Walmart Agrees to $100 Million FTC Settlement Over Deceptive Spark Driver Earnings Claims

On February 25, 2026, the Federal Trade Commission (FTC) announced that Walmart has agreed to a $100 million settlement to resolve allegations that it misled drivers about potential earnings on its Spark Driver delivery platform. The case, filed in coordination with 11 U.S. states, centers on claims that Walmart presented delivery workers with earnings estimates that were sometimes higher than what they ultimately received. Regulators argue that this lack of transparency affected thousands of gig workers who relied on those projections when deciding whether to accept delivery orders.

According to the FTC’s complaint, drivers were shown projected compensation figures that included base pay, incentives, and customer tips before accepting assignments. However, in certain instances—particularly involving bundled or batched orders—the final payout was lower than the amount initially displayed. The agency also raised concerns about representations that drivers would receive 100 percent of customer tips, stating that the structure of payment calculations or post-order adjustments created discrepancies. In addition, incentive programs and bonus qualifications were not always clearly explained, potentially leading drivers to expect higher compensation than they actually earned.

Although Walmart did not admit liability, it agreed to a stipulated court judgment to avoid extended litigation. Under the settlement terms, the company will pay $100 million, which will be allocated toward redress and compliance measures as determined by regulators. Walmart is also required to ensure that any earnings shown to drivers before order acceptance accurately reflect the amount they will be paid. Furthermore, the company must enhance transparency around base pay calculations, promotional incentives, and tip distribution, and it is prohibited from making misleading earnings claims in the future.

The case highlights an important distinction in the gig economy. Spark Drivers are classified as independent contractors rather than traditional employees. As a result, they are not guaranteed the U.S. federal minimum wage of $7.25 per hour. Instead, they are compensated per delivery. In favorable conditions—such as high order demand and strong customer tipping—drivers may earn the equivalent of $15 to $25 per hour or more. However, those figures are not guaranteed and can fluctuate depending on location, order volume, distance, and operating expenses such as fuel, vehicle maintenance, insurance, and taxes. After accounting for these costs, actual take-home earnings may be significantly lower.

Regulators emphasize that accurate earnings disclosures are critical in gig-based platforms, where workers make real-time decisions based on projected income. If those projections are inflated or unclear, drivers may commit time and resources under false expectations. The FTC’s action signals increased scrutiny of digital labor platforms and reinforces the principle that companies must provide truthful, transparent compensation information.

The $100 million resolution represents one of the most substantial enforcement actions involving gig worker pay transparency in recent years. It serves as a warning not only to Walmart but also to other companies operating in the rapidly expanding delivery and app-based services market. As regulatory oversight intensifies, platforms will likely face growing pressure to standardize earnings disclosures and adopt clearer compensation models.

For gig workers, this case underscores the importance of understanding pay structures before committing to platform-based work. For corporations, it reinforces that scale and market dominance do not exempt them from accountability. As of February 2026, this settlement stands as a significant development in the ongoing debate over fairness, transparency, and worker protection in the modern digital economy.