Attorney General Kwame Raoul, along with a bipartisan group of 11 attorneys general and the Federal Trade Commission (FTC), has reached a $100 million settlement with Walmart. The agreement addresses allegations that Walmart misled customers and drivers involved in its Spark Driver program regarding pay and delivery fees.
According to the settlement, Walmart was accused of misrepresenting pre-tip amounts, base pay, and incentive pay to drivers through the Spark application. Since 2018, this app has enabled nearly one million drivers to deliver over 270 million orders from Walmart stores to customers nationwide.
“I am pleased to be part of this bipartisan coalition with the FTC resolving allegations that Walmart misrepresented grocery delivery fees to customers and drivers,” Raoul said. “Companies should not be able to lure in vulnerable gig workers in Illinois by misstating how much a job is worth, and Illinois consumers should feel confident that any tip they pay is going to the worker who earned it.”
Drivers using Spark could view estimated earnings for each delivery offer, which included base pay from Walmart and any customer-selected pre-tip. Incentive payments were also available if certain delivery targets were met within specified periods or locations.
The allegations state that after drivers accepted offers through the app, Walmart sometimes split or altered orders so that drivers received less than initially promised for base pay or tips. It was also claimed that full requirements for earning incentive pay were not disclosed upfront; some drivers only learned about additional conditions when they did not receive expected payments.
Under the terms of the $100 million judgment, up to $79 million will go toward restitution for affected drivers. Of this amount, approximately $63 million has already been paid directly by Walmart—including $1.1 million distributed to Illinois drivers. The remaining funds will be placed in a “Driver Fund” set up by Walmart for future claims.
In addition to driver compensation, Walmart will pay $11 million collectively to participating states—about $1.1 million goes to Illinois—and an additional $10 million will be directed to the FTC.
Walmart must now implement an earnings verification program and provide annual reports to the FTC over the next decade. The company is also prohibited from altering orders after acceptance or providing misleading information about driver earnings.
This settlement reflects ongoing efforts by Attorney General Raoul’s office and partners across various states—including Arizona, Colorado, Michigan, North Carolina, Oklahoma, Pennsylvania, South Carolina, Utah and Wisconsin—as well as Alameda County’s district attorney in California.
The Illinois Attorney General’s office has historically advocated for vulnerable groups such as workers and handled thousands of consumer complaints annually according to its official website. The office aims to protect consumers and promote safer communities while extending advocacy efforts throughout Illinois (source). Services include assisting victims of crime and offering resources like complaint filing for consumer fraud (source).