Utah to receive more than $500k in multi-state settlement with Walmart
Utah will receive over $567,000 from a $100 million multi-state settlement with Walmart regarding deceptive practices within its Spark Driver program.Summary
The State of Utah will receive approximately $567,810 as part of a $100 million multi-state settlement with Walmart. The lawsuit alleged that Walmart deceived customers and drivers participating in its Spark Driver program, which utilizes gig workers for deliveries. Specifically, the allegations centered around misrepresentation of pay – including pre-tip amounts, base pay, and incentive pay – to drivers. The Utah Department of Commerce stated that Walmart would sometimes modify delivery orders after drivers accepted them, reducing their pay, and did not always pass on the full amount of customer tips.
As part of the settlement, Walmart is required to cease modifying orders after acceptance, clearly disclose incentive requirements, accurately represent pay amounts, implement an earnings verification program, and submit annual reports to the FTC for the next ten years. $89 million of the settlement will be used for restitution to drivers across the country, and an additional $10 million will be paid to the FTC for consumer refunds. These changes aim to provide greater transparency and fairness within the Spark Driver program.
(Source：Kutv)