FTC and 11 states reach $100 million settlement with Walmart over driver pay deception
By Adam Roberts
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ARKANSAS (KHBS, KHOG) — Walmart has agreed to pay $100 million to settle allegations from the Federal Trade Commission and 11 states over what it told delivery drivers about their pay, according to a news release from the FTC.
The FTC’s complaint alleged that Walmart deceived both drivers and consumers about the amount of tips drivers would receive.
It also claimed Walmart deceived drivers about the amount of base pay and tips in batched orders, and misrepresented the incentive pay they could receive.
Walmart sent a statement to 40/29 News, which read:
“We value the hard work and dedication of the drivers who deliver great service and products to our customers. We have issued payments to impacted drivers and continue to make additional payments as appropriate. We are continuously improving procedures to ensure fairness and transparency for drivers.”
In addition to paying $100 million, Walmart is now required to create an earnings verification program for drivers.
The company is also banned from misrepresenting driver pay and other information. It also isn’t allowed to modify its payment offers in most circumstances.
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