Walmart to pay Arkansas $847,000 in delivery driver settlement

The Federal Trade Commission (FTC) on behalf of Walmart Spark drivers in 11 states, recently settled with the retail giant for more than $100 million.

“While Arkansas was not part of the original lawsuit, we have reached a subsequent settlement with identical terms to the FTC action,” Arkansas Attorney General Tim Griffin said in a statement posted Friday (May 1). “Walmart will pay Arkansas $847,847.30 in civil penalties. This is a victory for consumers and working Arkansans, and I am pleased to see this issue resolved.”

The FTC lawsuit involved compensation paid to Walmart’s Spark Delivery drivers and was resolved in a consent judgment reached in February. The claims involved unfair practices regarding misrepresentation of compensation and tips paid to drivers before they accepted a delivery work order.

The FTC alleged Walmart reduced pay after delivery was made by misrepresenting batched orders or splitting tips and telling customers that 100% of the tips went to drivers. The retailer also failed to pay driver-incentive bonuses.

Griffin said monetary relief for affected drivers in Arkansas was provided as part of the consent judgment in the FTC lawsuit. Arkansas’s settlement ensures additional accountability and civil penalties for conduct affecting drivers in this state.

“We value the hard work and dedication of the drivers who deliver great service and products to our customers,” Walmart noted in a comment sent to Talk Business & Politics. “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.”