The lawsuit claims that workers have lost millions of dollars due to deceptive practices.
The Federal Trade Commission (FTC) and numerous states, such as Colorado, Michigan and Utah, have brought forward a lawsuit against Walmart regarding their Spark Driver Program.
The lawsuit states that Walmart’s has relayed false information to drivers in saying that they will receive the full tip amount from customers on regular orders, and full tips for “batched”, or combined, orders. The case goes on to allege that Walmart has misrepresented driver incentive pay, and been deceptive towards consumers regarding the promise that “100% of tips go to the driver.”
The agency said that these practices violate the FTC Act, which prevents unfair or deceptive acts in commerce, and the Gramm-Leach-Bliley Act, which requires that financial institutions explain their practices to customers. The lawsuit seeks to ban Walmart from continuing these actions and to adjust its programs to ensure fairness across the Spark Driver program. Walmart has agreed to a $100 million in settlement.
“Labor markets cannot function efficiently without truthful and non-misleading information about earnings and other material terms,” said Director Christopher Mufarrige of the FTC Bureau of Consumer Protection.
As the Lord Leads, Pray with Us…
- For Commissioner Andrew Ferguson as he presides over the Federal Trade Commission.
- For Director Mufarrige as he heads the FTC’s Bureau of Consumer Protection.
- For FTC officials as they seek to enforce trade standards for American corporations.
Sources: Federal Trade Commission, The U.S. Sun
