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Walmart agrees to $100M settlement over deceptive pay practices in Spark Driver program | TechCrunch

TechCrunch·Sarah Perez·6 months ago
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Walmart has agreed to pay $100 million to settle a lawsuit from the Federal Trade Commission (FTC) over deceptive pay practices within its Spark Driver service, which uses gig workers to deliver online orders from local stores to customers. The retailer was accused of misleading drivers about their potential base pay and tip amounts, and then deceived customers by saying that 100% of tips went to the drivers, when they did not. In its original complaint , the FTC was joined by Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin. The lawsuit alleged that Walmart, since 2021, had made false representations about Spark Driver earnings. Among these, Walmart was accused of frequently splitting a customer’s order between drivers, which would lead to splitting the tip. Meanwhile, customers were told their driver — as in one single driver — would get the full tip.…

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