Walmart Coughs up $100M for Deceiving Delivery Drivers
If you’ve ever spoken to a trucker about Walmart, you’ve probably heard negative things. On top of banning semi-trucks from staying overnight. But this is about folks in passenger cars. It prevented them from earning thousands of dollars. However, a lawsuit settlement is now forcing the retailer to pay out $100 million.
Walmart forced to pay $100 million for deceptive delivery driver practices
After years of ripping off truckers and folks in passenger cars, Walmart is paying out $100 million to settle a lawsuit with the United States Federal Trade Commission. Allegedly, the retailer caused delivery drivers to lose tens of millions in earnings.
The company deceived truckers about the amount of base pay, incentive pay, and tips they could earn. Walmart used an outsourcing gig delivery driver program called Spark to show inflated pay rates and tip amounts.
It claimed that all tips would go to the drivers, which was misleading. Reportedly, Walmart failed to inform drivers that tops would be split when a customer’s delivery was split among multiple drivers.
According to Fox 13, as part of the settlement agreement, Walmart will implement a verification program to ensure drivers receive the promised amount of pay, tips, and other orders.
Walmart shares that it values “the hard work and dedication of the drivers who deliver great service and products to our customers.” It has issued payments to affected drivers and continues to make payments.
Walmart continues, “We are continuously improving procedures to ensure fairness and transparency for drivers.”
Also, the retailer credits speedy online deliveries for fueling its growth. Its e-commerce business increased by 27% during the fourth fiscal quarter, accounting for 23% of total sales.
