Utah reaches financial settlement with Walmart over Spark Driver Program controversy
Summary
The State of Utah, along with other states and the Federal Trade Commission (FTC), has reached a $100 million settlement with Walmart regarding allegations of deceptive practices in its Spark Driver Program. The program, launched in 2018, allows customers to order deliveries through the Spark App and individuals to sign up as drivers. The settlement resolves claims that Walmart misrepresented earnings to drivers by altering offers after acceptance, failing to fully disclose incentive requirements, and retaining portions of customer tips. Approximately $89 million will be used for consumer restitution, with $11 million distributed to participating states, including $567,810.77 to Utah. Walmart will also pay $10 million to the FTC and implement an earnings verification program, submitting annual reports for the next decade to ensure accurate driver compensation. The company is also prohibited from modifying orders post-acceptance or misrepresenting driver earnings.
(Source:Cedar City News)