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Walmart to pay $100 million to settle FTC allegations over deceptive practices for delivery drivers

Business

Walmart to pay $100 million to settle FTC allegations over deceptive practices for delivery drivers
Business

Business

Walmart to pay $100 million to settle FTC allegations over deceptive practices for delivery drivers

2026-02-27 01:52 Last Updated At:13:33

NEW YORK (AP) — Walmart Inc. has agreed to pay $100 million to settle allegations from the U.S. Federal Trade Commission that the retailer caused its delivery drivers to lose tens of millions of dollars’ worth of earnings by deceiving them about their pay and tips they could make, the commission said ‌in a ​statement ​on Thursday.

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.

FILE - A shopper heads into a Walmart store Thursday, Oct. 16, 2025, in Englewood, Colo. (AP Photo/David Zalubowski, File)

FILE - A shopper heads into a Walmart store Thursday, Oct. 16, 2025, in Englewood, Colo. (AP Photo/David Zalubowski, File)

COLOMBO, Sri Lanka (AP) — New Zealand failed to clinch a Twenty20 World Cup semifinals place when it lost to England by four wickets on Friday, leaving Pakistan a last chance to qualify.

New Zealand looked set to join England in the semifinals when it reduced England to 117-6 in the 17th over in pursuit of 160. But big hits by Will Jacks and Rehan Ahmed got England over the finish line with three balls remaining in a thriller.

“Would have made our lives easier if we won,” New Zealand captain Mitch Santner said. “We played a pretty good game. Credit to England. Jacks and Rehan with the finishing touches, it was a good bit of batting.”

The odds still favor New Zealand going through from the Super Eights but Pakistan has a last-ditch chance on Saturday against Sri Lanka in Pallekele.

Pakistan has to beat Sri Lanka by 64 runs or chase down the tournament co-host in 13.1 overs.

England had already qualified but completed the Super Eights three-for-three unbeaten.

That record was in jeopardy for much of the chase.

Phil Salt was out in the first over and fellow opener Jos Buttler for a two-ball duck in the second over. Buttler has only 62 runs in seven matches and his 10th career duck set the all-time record for England in T20s.

Captain Harry Brook and Jacob Bethel were gone inside nine overs then Tom Banton and Sam Curran struggled to 42 runs in 35 balls. England was left needing 43 runs off 19 deliveries with four wickets on a used pitch that was turning.

Ahmed replaced Jamie Overton because of the pitch and took 2-28, and he made his bat also count.

He sent the second ball he faced over the long-on fence as he and Jacks turned the game with 22 runs in the 18th over bowled by Glenn Phillips. They plundered 16 runs from the 19th bowled by Santner and cruised home.

Jacks was unbeaten on 32 including a six and four boundaries. Ahmed faced seven deliveries for 19 which included two sixes and a boundary.

“Having gone out on a knife edge I'm over the moon," Jacks said after his fourth player of the match award in the tournament. “Rehan played a brilliant innings. Everyone struggled to get going on that pitch and the six he hit second ball got them rattled and I fed off him.

“Feel confident right now, calm in the middle. That can be vital. We're going in the right direction, three wins in the Super Eight, we're very happy.”

Santner chose to bat first, as both teams wanted, and his team made 159-7.

Tim Seifert and Finn Allen opened with 64 in seven overs but they lost wickets frequently from then on. Phillips top-scored with 39. New Zealand scored only 24 runs in the last three overs.

Spinners Jacks, Adil Rashid and Ahmed took two wickets each.

AP cricket: https://apnews.com/hub/cricket

New Zealand's Finn Allen plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

New Zealand's Finn Allen plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Liam Dawson bowls a delivery during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Liam Dawson bowls a delivery during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

New Zealand's Tim Seifert plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

New Zealand's Tim Seifert plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Rehan Ahmed hits a six during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Rehan Ahmed hits a six during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Will Jacks plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

England's Will Jacks plays a shot during the T20 World Cup cricket match between England and New Zealand in Colombo, Sri Lanka, Friday, Feb. 27, 2026. (AP Photo/Eranga Jayawardena)

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