Attorney General Alan Wilson, along with a bipartisan coalition of attorneys general and the Federal Trade Commission (FTC), has reached a $100 million multistate settlement with Walmart. The agreement addresses allegations that Walmart misled both customers and drivers participating in its Spark Driver Program. As part of the settlement, drivers in South Carolina will receive about $1 million for losses linked to Walmart’s actions, and nearly another $1 million will go to the State of South Carolina.
“Walmart’s actions had real financial consequences for thousands of South Carolinians who worked in the Spark Driver Program,” said Attorney General Alan Wilson. “I am pleased that this settlement will fairly compensate those drivers, as well as ensure they are paid properly moving forward.”
The Spark Driver program, which began in 2018, allows customers to order products from Walmart for home delivery through the Spark App. Drivers sign up on the app to pick up and deliver products from stores to customers’ homes. They use the app to view offers showing estimated earnings per delivery—including base pay and any pre-tip selected by customers—and can also earn incentive pay under certain conditions such as completing deliveries within a set timeframe or referring new drivers. Nearly one million drivers have completed 272 million deliveries nationwide using this system.
According to authorities, Walmart allegedly misrepresented key details about pre-tip amounts, base pay, and incentive pay offered to drivers. In some cases, after a driver accepted an offer displayed by Walmart, parts of the order were changed or split so that drivers ultimately received less than promised—including reductions in base pay or tips. The company also reportedly failed to fully disclose requirements for earning incentives.
Customers were also allegedly led to believe that their entire tip would go directly to drivers; however, it was found that Walmart did not always pass on full tips and sometimes kept them entirely.
Under the terms of the $100 million judgment included in the settlement, Walmart will pay or has already paid up to $79 million directly to affected drivers. Additionally, $11 million is being paid out among states involved in the case and another $10 million is allocated for refunds to consumers through the FTC. For at least ten years going forward, Walmart must operate an earnings verification program and submit annual reports to the FTC verifying proper payment practices for drivers; it is also prohibited from modifying orders after acceptance or misrepresenting driver compensation.
Attorney General Wilson joined forces with attorneys general from Arizona, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, Utah, Wisconsin; Alameda County District Attorney’s Office in California; and federal regulators at the FTC on this action.
The South Carolina Attorney General serves as the state’s chief legal advocate—handling prosecutions and regulatory enforcement while supporting victims of crime across all regions of South Carolina (official website). The office collaborates closely with law enforcement agencies statewide on criminal matters and enforces consumer protection laws (official website). Alan Wilson currently leads these efforts (official website).
A copy of the proposed settlement is available HERE.
