Walmart (NYSE:WMT) will pay a $100 million to settle a lawsuit that accuses the U.S. retailer of misleading its delivery drivers about their compensation, causing substantial income loss.

The Federal Trade Commission (FTC) and 11 states lodged a case against Walmart, alleging the retailer misled its workers about their base pay, incentive pay, and possible tips. The FTC’s announcement indicated that the allegations specifically targeted Walmart’s Spark Delivery network, operational since 2021.

Launched in 2018, the Spark Program allows gig workers to complete deliveries for Walmart and other retailers, including Home Depot Inc. (NYSE:HD) and 1-800-Flowers.com Inc. (NASDAQ:FLWS).

The FTC also accused Walmart of misleading customers by claiming that 100% of tips would go directly to drivers. According to the complaint, despite being aware of the problems, the company failed to address them, allegedly violating ...