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Joined by 11 states — Arizona, California, Colorado, Illinois,
Michigan, North Carolina, Oklahoma, Pennsylvania, South
Carolina, Utah and Wisconsin — the FTC alleges that the
Bentonville, Arkansas-based retailer showed drivers inflated
base pay and tip amounts in its crowdsourced gig driver delivery
program called Spark.
The FTC alleges that the retailer deceived customers by falsely
claiming that all of its customer tips would actually go to
drivers. The commission also alleges that Walmart failed to
inform drivers that it would split tips when a customer’s
delivery was split across multiple drivers.
“Labor markets cannot function efficiently without truthful and
nonmisleading information about earnings and other material
terms,” said Christopher Mufarrige, director of the FTC’s Bureau
of Consumer Protection, in a statement.
As part of its settlement with the FTC, Walmart is required to
implement an earnings verification program to ensure that
drivers are paid the promised earnings and tips, among other
orders.
Walmart launched its Spark program in 2018, allowing gig workers
to enlist to make deliveries for the retailer.
Walmart has credited its speedy online deliveries for helping to
fuel the company's sales growth. Its e-commerce business
increased 27% during the fiscal fourth quarter, accounting for
23% of overall sales.
Walmart said in a statement e-mailed to The Associated Press
that it values "the hard work and dedication of the drivers who
deliver great service and products to our customers.” It noted
that it has issued payments to affected drivers and continues to
make additional payments as appropriate.
“We are continuously improving procedures to ensure fairness and
transparency for drivers,” Walmart said.
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