Penalty Amount
$13,000,000
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.
Walmart must pay over $13 million, with half going directly to affected Texas delivery drivers. The company is also required to implement transparent and accurate compensation practices, and the Texas OAG will continue to review records and marketing materials to ensure compliance.
In-house legal teams should review independent contractor agreements and vendor agreements with gig economy platforms, focusing on compensation clauses, tip distribution policies, and marketing representations. Key clauses to examine include: how base pay is calculated and whether it can be altered after acceptance, how customer tips are passed through to drivers, and the accuracy of incentive earnings descriptions. Teams should also audit marketing materials and driver-facing communications for consistency with contractual promises, and ensure there are clear audit rights and reporting requirements to verify compliance with compensation commitments.
Entity
Walmart, Inc.
Industry
RetailOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-secures-over-13-million-walmart-ensure-delivery-drivers-receive-fair
Walmart
https://www.texasattorneygeneral.gov/sites/default/files/images/press/Walmart.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Walmart, Inc."
"over $13 million"
"Walmart made false representations to drivers regarding their pay, including pre-tips selected by customers at checkout, base pay, and special incentive earnings opportunities"
"Half of this amount has been paid out directly to delivery drivers affected by Walmart’s deceptive marketing and practices"
"The settlement also requires that Walmart takes measures to ensure that drivers get paid fairly and in line with what is being marketed to them"
$100.0M
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.
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
Texas Attorney General Ken Paxton opened an investigation into LinkedIn Corporation over allegations that the company advertised and profited from fake or misleading job opportunities ("ghost jobs") on its platform. The investigation focuses on whether LinkedIn misled consumers who paid for Premium subscriptions by failing to disclose that a significant percentage of job postings may be inactive or not genuine hiring opportunities.
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
Texas Attorney General Ken Paxton announced an investigation into StubHub for failing to deliver FIFA World Cup tickets that fans purchased. The investigation focuses on reports of 'ghost ticketing,' where sellers list tickets they do not possess, collect payment, and cancel when unable to deliver.