"Walmart was accused of frequently splitting a customer's order between drivers, which would lead to splitting the tip. Meanwhile, customers were told their driver - as in one single driver - would get the full tip. In batch orders, Walmart would remove tips from some of the orders without informing the driver."
"Walmart also promised tips to drivers in advance of taking orders, but then failed to collect a tip from the customer, leaving the driver without a tip entirely. Other issues had to do with reductions Walmart made to drivers' base pay after they had accepted an offer or other misrepresented incentives."
"As a result of the settlement, Walmart will have to implement an earnings verification program to ensure drivers are paid the promised earnings and tips. It's also prohibited from adjusting the base pay, incentives, or tips after the initial offer, except if the driver fails to provide the service or a customer cancels."
Walmart settled a $100 million FTC lawsuit over deceptive practices in its Spark Driver delivery service. The company misled drivers about base pay and tips, and deceived customers by claiming 100% of tips went to drivers when they did not. Walmart frequently split orders between drivers while splitting tips, removed tips from batch orders without notification, and promised tips that were never collected. The company also reduced base pay after drivers accepted offers. These practices caused drivers to lose millions in promised earnings and generated thousands of consumer complaints. The settlement requires Walmart to implement an earnings verification program and prohibits adjusting pay, incentives, or tips after initial offers except for service failures or cancellations.
#gig-economy-deception #ftc-settlement #worker-exploitation #consumer-protection #spark-driver-service
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