Walmart has agreed to a $100 million settlement with the FTC to address allegations of misleading delivery drivers about their pay and tips. The FTC found that Walmart misrepresented driver compensation and tip allocation, resulting in drivers receiving less than promised. The settlement aims to compensate affected drivers and require Walmart to revise its business practices for transparency.
Walmart has agreed to a $100 million judgment to settle allegations that it deceived delivery drivers about their pay and tips, the Federal Trade Commission announced Thursday — a move FTC Chair Andrew Ferguson touted as "a huge win for American workers.
" "We had been investigating Walmart and its representations that it was making to its delivery drivers that millions of Americans use all across the country, and the consumers who are using the delivery services, about how much delivery drivers were going to be paid, whether the entirety of your tip was actually going to go to drivers, which is what Walmart was telling both drivers and consumers," Ferguson told "Varney & Co." "What we concluded in our investigation is that… Walmart was misrepresenting both how much drivers were going to get paid and where tips were going, both to drivers and consumers, and that meant that drivers were denied millions and millions of dollars that they thought they were going to get when they signed up to do these jobs for Walmart." UBER IN HOT SEAT AS PROBE FINDS VIOLENT OFFENDERS WERE CLEARED TO DRIVE PASSENGERS: REPORT Ferguson said the settlement will require Walmart to pay $100 million to drivers who "were denied the full compensation that they had been promised." He said the development also requires the company to "redo its business practices to make sure drivers get what they're promised" and ensure representations made to both drivers and consumers are "correct accurate," and that the company "will live up to its promises." The FTC, along with 11 states, accused the retail giant of deceiving Spark delivery drivers about "base pay, incentive pay and tips they could earn," leaving them to "lose tens of millions of dollars' worth of earnings," according to the agency's public affairs office. AMAZON PRIME SETTLEMENT COULD PUT MONEY BACK IN YOUR POCKET "Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms," FTC Bureau of Consumer Protection Director Christopher Mufarrige said in the press release. A Walmart spokesperson told Reuters that the company has compensated affected drivers and is continuing to issue additional payments where necessary. "We value the hard work and dedication of the drivers who deliver great service and products to our customers... We are continuously improving procedures to ensure fairness and transparency for drivers," the spokesperson told the outlet. GET FOX BUSINESS ON THE GO BY CLICKING HERE Ferguson told FOX Business that the outcome isn't limited to Walmart. "Any of the sort of gig delivery services that try to induce people to do deliveries by making promises about compensation have to be honest about those promises, and we're going to hold everyone to account – not just Walmart," he said.
Walmart FTC Delivery Drivers Pay Tips Settlement
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Walmart to pay $100M in FTC settlement over alleged Spark driver pay deceptionWalmart Inc. has agreed to pay $100 million to settle allegations that the company caused delivery drivers to lose tens of millions of dollars’ worth of earnings, by deceiving them about the base pay, incentive pay and tips they could make, the U.S. Federal Trade Commission said in a statement on Thursday.
Read more »
Walmart agrees to pay $100 million to settle allegations that it deceived delivery drivers about payThe Federal Trade Commission, joined by 11 states, claimed that the retail giant deceived its employees about pay and the tips they could earn.
Read more »
Walmart to pay $100 million to settle FTC allegations it deceived delivery drivers about potential earningsThe FTC alleges that the retailer showed drivers in its crowdsourced gig driver delivery program inflated base pay and tip amounts, and falsely claimed that 100% of customer tips would actually go to drivers.
Read more »
FTC chair touts ‘huge win for American workers’ after Walmart agrees to $100M settlement over driver payWalmart agrees to $100 million FTC settlement over allegations it deceived delivery drivers about pay and tips, allegedly affecting millions of workers nationwide.
Read more »
Walmart to pay $100 million to settle FTC allegations over deceptive practices for delivery driversWalmart will pay $100M to settle FTC claims it misled delivery drivers about pay and tips, causing them to lose tens of millions in earnings.
Read more »
Walmart to pay $100 million to settle FTC case on driver wagesIn a complaint filed in California federal court, the consumer protection agency said the company misled drivers about how it calculated their base pay, tips and special “incentive” earnings opport…
Read more »