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 sued Open AI Global, LLC and affiliated entities, alleging that ChatGPT was marketed as safe and reliable without disclosing risks of inaccurate or harmful outputs. The suit also alleges harms to minors and collection of their data without parental oversight; the release states no monetary penalty or specific remedy imposed.
Texas Attorney General Ken Paxton secured an Assurance of Voluntary Compliance with Lululemon USA Inc. after investigating potential PFAS and consumer representations about product safety. The agreement requires the company to maintain supply-chain chemical standards, verify vendor compliance through testing or certifications, and take corrective action for three years; no monetary penalty is stated.
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.