Walmart to Pay $100M Settlement Over Spark Driver Pay and New FTC Mandates
Walmart agreed to pay $100 million to resolve FTC allegations it underpaid Spark delivery contractors by failing to reimburse fees and fuel costs. The agreement also imposes injunctive relief requiring clear pay disclosures, enhanced driver training and ongoing compliance reporting to the FTC.
1. Settlement Terms
Walmart will pay a $100 million fund within 60 days to compensate Spark delivery contractors, resolving the FTC’s claims. The settlement foresees reimbursements for unpaid fees, fuel expenses and related deductions dating back to 2018.
2. FTC Allegations
The FTC alleged Walmart misclassified Spark drivers as independent contractors and imposed hidden fees, cutting into promised delivery earnings. Regulators contended the company failed to disclose pay structures and deductions, misleading thousands of gig workers.
3. Operational Changes
Under the agreement, Walmart must implement transparent pay disclosures in its Spark app, update driver training programs and clearly itemize any marketplace fees. The retailer will also submit periodic compliance reports to the FTC over the next three years.
4. Financial Outlook
Analysts estimate the one‐time $100 million charge will have a modest impact on Walmart’s fiscal 2026 EBIT, equivalent to under a penny of estimated EPS. Shares reacted with limited volatility, reflecting broad expectations that the settlement removes regulatory uncertainty around Walmart’s gig‐delivery service.