Walmart will pay the state of Arkansas nearly a million dollars following a multistate lawsuit over allegations that the retail giant misled delivery drivers about their pay.
Arkansas Attorney General Tim Griffin announced on Friday that Walmart will pay the state $847,847.30 in civil penalties after the Federal Trade Commission and 11 states sued Walmart. The lawsuit alleged that the company showed drivers in its Spark Driver delivery program inflated base pay and tip amounts — leading drivers to expect more money than they actually received.
The complaint also alleged that Walmart deceived customers by falsely claiming that all of the customers’ tips would actually go to drivers. The FTC also said Walmart failed to inform drivers that it would split tips when a customer’s delivery was split across multiple drivers.
For drivers who rely on gig economy income to make ends meet, the difference between promised pay and actual pay is not a small matter. The lawsuit claims Walmart knew exactly what it was doing.
The Settlement
Arizona, California, Colorado, Illinois, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah, and Wisconsin were all part of the original lawsuit against Walmart. Arkansas was not initially involved.
However, Griffin said his office “reached a subsequent settlement with identical terms to the FTC action.” That means Arkansas secured the same penalties and protections as the other 11 states, even though it was not part of the original complaint.
“This is a victory for consumers and working Arkansans, and I am pleased to see this issue resolved,” Griffin said in a statement.
He also noted that the settlement ensures additional accountability and civil penalties for conduct affecting drivers in the state.
Walmart’s Response
A Walmart spokesperson previously provided a statement to KNWA/FOX24 after the settlement was announced.
“We value the hard work and dedication of the drivers who deliver great service and products to our customers,” the spokesperson said. “We have issued payments to impacted drivers and continue to make additional payments as appropriate. We are continuously improving procedures to ensure fairness and transparency for drivers.”
The statement is careful. It does not admit wrongdoing. It does not deny the allegations. It focuses on future improvements and past payments. But the $847,847.30 penalty is real. And the multistate agreement is binding.
What Walmart’s Spark Program Does
Walmart’s Spark Driver program is a gig-based delivery service that competes with DoorDash, Uber Eats, and Amazon Flex. Drivers use their own vehicles to deliver groceries and other Walmart products to customers. The program has grown rapidly as Walmart expands its e-commerce and delivery capabilities.
But with growth comes scrutiny. The FTC and state attorneys general investigated how Walmart communicated pay to drivers. The allegation is that Walmart was not transparent about how tips were handled and how base pay was calculated.
For a company that prides itself on “everyday low prices,” the lawsuit suggests that those low prices may have been subsidized by misleading the workers who make delivery possible.
The Bottom Line
Walmart will pay Arkansas $847,847.30 in civil penalties after a multistate lawsuit alleged the company misled Spark delivery drivers about their pay. The Federal Trade Commission and 11 states sued Walmart, claiming the retail giant showed drivers inflated base pay and tip amounts and deceived customers by falsely claiming all tips would go to drivers. Arkansas was not part of the original lawsuit but reached a separate settlement with identical terms.
Arkansas Attorney General Tim Griffin called the settlement “a victory for consumers and working Arkansans.” Walmart said it values its drivers, has issued payments to impacted drivers, and is improving procedures to ensure fairness and transparency.
