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.
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.