FTC, State AGs reach $100M Walmart settlement for deception

CO Attorney General Press Releases

Filed February 26th, 2026

Detected February 27th, 2026

Summary

The FTC and 10 State Attorneys General have reached a $100 million settlement with Walmart over allegations of deceiving drivers and customers in its Spark Driver Program. Walmart will pay drivers up to $79 million and implement an earnings verification program for 10 years.

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What changed

The Federal Trade Commission (FTC) and a bipartisan group of 10 State Attorneys General, including Colorado AG Phil Weiser, have finalized a $100 million multistate settlement with Walmart. The settlement resolves allegations that Walmart engaged in deceptive practices concerning its Spark Driver Program, including misrepresenting earnings, base pay, and incentive pay to drivers, and failing to pass on full customer tips. Walmart will pay up to $79 million directly to drivers nationwide and has already paid approximately $700,000 to Colorado drivers. The company is also prohibited from modifying orders after drivers accept them or misrepresenting earnings.

Walmart must also operate an earnings verification program and submit annual reports to the FTC for the next 10 years to ensure drivers are paid as promised. This settlement signifies a significant enforcement action holding a major retailer accountable for deceptive practices impacting gig economy workers and consumers. Companies operating similar delivery or gig worker programs should review their compensation structures and disclosure practices to ensure compliance with consumer protection laws and avoid similar penalties.

Source document (simplified)

Attorney General Phil Weiser, FTC reach $100M nationwide settlement with Walmart for deceiving drivers and customers for delivery services

Feb. 26, 2026 (DENVER) – Attorney General Phil Weiser and a bipartisan group of attorneys general along with the Federal Trade Commission reached a $100 million multistate settlement with Walmart today over allegations that the company deceived customers and drivers who participated in its Spark Driver Program. Walmart will pay or already has paid drivers in Colorado approximately $700,000 they lost because of Walmart’s alleged actions and will pay more than $786,000 to the Colorado Attorney General’s Office.

“Walmart’s false earnings claims and misrepresentations cost drivers millions of dollars in tips, base pay, and incentives. Walmart also harmed customers by collecting tips that were intended for drivers but ultimately never paid to them. These deceptive practices are a violation of Colorado laws that protect consumers. Today we are holding Walmart accountable and ensuring workers and customers are treated fairly,” said Attorney General Weiser.

Walmart has run the Spark Driver program since 2018. Customers can use the Spark App to order products from Walmart for home delivery, and people can sign up to be drivers on the app. Drivers pick up products from Walmart stores and deliver them to customers, and they use the app to view and select offers to complete deliveries for payment. These offers include an estimate of how much the driver will earn from the delivery, including the base amount Walmart will pay the driver and any tip the customer has selected to pay. Walmart also offers incentive pay if drivers complete deliveries within a specific timeframe or in a particular area, complete a certain number of deliveries, or refer a new driver. Almost a million drivers have made 272 million deliveries nationwide through the program.

Today’s settlement resolves allegations that Walmart misrepresented tip amounts, base pay, and incentive pay to drivers. While Walmart showed one offer to the driver, they split or changed parts of the order after the driver accepted the offer, and ultimately the driver received less than the base pay or the full tip or the base pay. Walmart also failed to pay drivers for completing incentives by not disclosing the full incentive requirements.

Walmart also allegedly deceived customers into thinking that 100 percent of their tip would go to drivers when, in fact, the company didn’t always pass on the full tips to the drivers and sometimes kept them entirely.

As part of the settlement, Walmart will pay or already has paid up to $79 million directly to drivers nationwide Walmart will also have to operate an earnings verification program and submit an annual report to the FTC for the next 10 years to make sure drivers are being paid what they were promised. The company is also prohibited from modifying orders after drivers accept them or misrepresenting how much a driver will earn from an offer.

Joining the settlement along with the FTC are the attorneys general of Arizona, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin, as well as the District Attorney of Alameda County in California.

Read a copy of the proposed settlement (PDF).

Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov

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