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."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.