Walmart has reached a **$100 million** settlement with the Federal Trade Commission (FTC) and a bipartisan group of state attorneys general to resolve allegations of deceptive practices within its Spark Driver program. The settlement addresses claims that the retail giant misled nearly **1 million** gig drivers and its customer base. Regulators alleged that Walmart failed to pass on **100%** of customer tips to drivers as promised, and in some instances, made no tip payments at all. The investigation revealed that Walmart frequently altered base pay and incentive offers after drivers had already accepted delivery tasks. This resulted in drivers receiving significantly less than the amounts originally advertised on the platform. Under the terms of the agreement, up to **$79 million** will be paid directly to affected drivers. An additional **$10 million** is allocated to the FTC for consumer refunds, while **$11 million** will be distributed among the participating states. This enforcement action comes at a time of record growth for Walmart's digital infrastructure. In its latest fiscal report released in February 2026, the company saw global e-commerce sales surge by **24%**, with total annual revenue reaching **$713.2 billion**. Despite this financial momentum, the company’s stock recently faced pressure following a cautious outlook for the upcoming year. Walmart projected net sales growth of **3% to 4%** for fiscal year 2027, a figure that trailed some analyst expectations and triggered a **6%** intraday drop in share price following the announcement. The Spark Driver program remains a critical component of Walmart’s "last-mile" delivery strategy, which has seen expedited delivery volumes grow by more than **50%**. However, the FTC settlement now mandates strict transparency, prohibiting the company from misrepresenting future earnings or incentive requirements. This case reflects a broader regulatory crackdown on the global gig economy, which is valued at approximately **$146.5 billion** as of 2025. Regulators are increasingly scrutinizing "algorithmic wage discrimination" and deceptive tip-pooling practices across major delivery and ride-hailing platforms. Walmart has stated it is already implementing system improvements to enhance transparency for its driver network. The settlement ensures that the company cannot change the material terms of a delivery offer once it has been accepted by a driver. [Walmart Spark Settlement Details](https://www.google.com/search?q=https://www.youtube.com/watch%3Fv%3DLk25Rcl9A7k) This video provides a breakdown of the FTC's allegations and the specific financial breakdown of how the settlement funds will be distributed to drivers.