BATON ROUGE — Walmart has agreed to pay Louisiana more than $1 million to settle a lawsuit filed by the state Attorney General’s Office alleging the company shortchanged or misled drivers who deliver goods from local stores or warehouses to Louisiana customers.
Attorney General Liz Murrill said last week that the settlement filed in the 19th Judicial District Court in East Baton Rouge Parish resolves allegations that Walmart deceived customers and gig workers who took part in the company’s Spark Driver service. Walmart will pay Louisiana $1,051,682 to settle the alleged violations of the Louisiana Unfair Trade Practices and Consumer Protection Law.
The company has already paid Louisiana gig drivers who participated in the Spark Driver service more than $1 million as compensation for previous underpayments, according to the settlement.
“All told, Walmart’s practices have caused drivers to lose millions of dollars that Walmart deceptively misrepresented drivers would earn,” the settlement states. “Walmart’s practices have also harmed its consumers by collecting tips that were intended for drivers but ultimately never paid to them.”
In a prepared statement, Murrill said corporations cannot deceive gig workers about pay agreements or mislead them about where their tips are going.
“This settlement requires Walmart to implement an earnings verification program and helps ensure Louisiana drivers receive the earnings and tips they were promised," she said.
The company neither acknowledged nor denied any of the allegations mentioned in the settlement, except in specifically stated assurances.
“We value the hard work and dedication of the drivers who deliver great service and products to our customers,” a Walmart spokesperson said in an email to the Louisiana Record. “We have issued payments to impacted drivers and continue to make additional payments as appropriate. We are continuously improving procedures to ensure fairness and transparency for drivers.”
Murrill’s office alleged that the company has been making false representations to Spark Driver workers since at least 2021, in the areas of tip earnings, base pay and “incentive” earnings opportunities offered by Walmart.
“Walmart regularly misrepresents the conditions drivers must satisfy to complete these incentives and regularly fails to pay drivers for the incentives they have completed,” the settlement says.
The company has been aware for years of harms created by the allegations of deceptive practices, according to the settlement. The practice has generated thousands of consumer complaints.
“Rather than address these well-known issues, however, Walmart has persisted in these practices and continues to attract and retain drivers and customers to Spark with false earning claims and misleading representations,” the agreement states.
The company has agreed to prohibit making any modifications of offers – or misrepresentations – to drivers under the Spark service. In return, the attorney general has agreed to release Walmart from civil claims, damages or penalties related to Spark Driver violations of Louisiana’s consumer protection law prior to the settlement’s effective date of July 30.
If the state determines that the company has made any misrepresentation or false statement in the requirements outlined in the settlement, Walmart will be required to pay $1 million to the state as a civil penalty.
The settlement does not cover claims made in private lawsuits filed against Walmart over the Spark Driver service.
