(qlmbusinessnews.com . Fri 27th Feb, 2026) London, UK —
Major Victory for Delivery Drivers: Walmart Agrees to £74.1M Settlement in Compensation Case
Walmart has committed to a £74.1 million settlement over allegations it deceived freelance delivery drivers regarding their compensation and tips.
The announcement made by the Federal Trade Commission (FTC) along with a coalition of 11 states, highlighted that the individuals using Walmart's Spark Driver application were left considerably short-changed.
The complaint also uncovered that Walmart inaccurately informed its customers, promising that all tips would directly benefit the drivers.
In response, Walmart has acknowledged the need for enhancements in its system to “ensure fairness and transparency”, and has commenced the process of compensating those affected.
Delivery personnel are anticipated to benefit from £58.6 million in settlements, as stated by FTC officials. Walmart has yet to disclose the average amount expected to be received by each driver.
Walmart expressed appreciation for the drivers, stating, “We value the hard work and dedication of the drivers who deliver great service and products to our customers.”
The Spark Driver initiative was launched in 2018 by Walmart, aiming to enhance its e-commerce and delivery offerings.
Since its inception, the app has seen deliveries from over a million individuals, positioning it as one of the prominent last-mile delivery services in the US.
The FTC pointed out that drivers frequently encountered discrepancies between the anticipated earnings communicated by Walmart and their actual compensation. This was particularly evident in situations involving split customer orders or adjustments in the distribution of delivery tasks among drivers.
Dating back to at least 2021, these issues have incited thousands of complaints and have been acknowledged as “known problems” within Walmart, as stated in the claim filed in a federal court in California.
The claim further accuses Walmart of continuing these malpractices, thereby attracting and retaining drivers and customers to Spark through false earnings claims and misleading statements.
According to FTC officials, Walmart initiated the repayment to drivers following the agency's intervention last year.
In addition to compensating the drivers, Walmart has also agreed to pay £7.4 million to the FTC and £8.1 million to the involved states.
Christopher Mufarrige, the FTC's Bureau of Consumer Protection Director, emphasized the importance of honest and clear communication regarding earnings for the efficiency of labour markets.
The settlement also imposes a restriction on Walmart, preventing the company from altering the initial compensation offer for jobs, with only a few exceptions permitted.
The terms of the settlement are expected to bring about “significant changes to Walmart's business practices to ensure that Walmart never repeats such actions”, as stated by FTC Chairman Andrew Ferguson and Commissioner Mark Meador in a joint statement.
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