FTC Chairman Andrew Ferguson discusses Walmart’s $100M judgment and addresses a New York Occasions op-ed’s claims concerning the FCC and FTC on ‘Varney & Co.’
Walmart has agreed to a $100 million judgment to settle allegations that it deceived supply drivers about their pay and suggestions, the Federal Commerce Fee introduced Thursday — a transfer FTC Chair Andrew Ferguson touted as “an enormous win for American employees.”
“We had been investigating Walmart and its representations that it was making to its supply drivers that thousands and thousands of People use all throughout the nation, and the customers who’re utilizing the supply companies, about how a lot supply drivers had been going to be paid, whether or not the whole lot of your tip was really going to go to drivers, which is what Walmart was telling each drivers and customers,” Ferguson informed “Varney & Co.”
“What we concluded in our investigation is that… Walmart was misrepresenting each how a lot drivers had been going to receives a commission and the place suggestions had been going, each to drivers and customers, and that meant that drivers had been denied thousands and thousands and thousands and thousands of {dollars} that they thought they had been going to get after they signed as much as do these jobs for Walmart.”
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Andrew Ferguson, chair of the Federal Commerce Fee (FTC), throughout a Bloomberg Tv interview in Washington, D.C., on Aug. 22, 2025. (Stefani Reynolds/Bloomberg by way of Getty Photos / Getty Photos)
Ferguson stated the settlement would require Walmart to pay $100 million to drivers who “had been denied the complete compensation that that they had been promised.”
He stated the event additionally requires the corporate to “redo its enterprise practices to ensure drivers get what they’re promised” and guarantee representations made to each drivers and customers are “right [and] correct,” and that the corporate “will stay as much as its guarantees.”
The FTC, together with 11 states, accused the retail large of deceiving Spark supply drivers about “base pay, incentive pay and suggestions they might earn,” leaving them to “lose tens of thousands and thousands of {dollars}’ value of earnings,” in accordance with the company’s public affairs workplace.
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A Walmart retailer in Salinas, California, on April 8, 2014. (iStock / iStock)
“Labor markets can’t operate effectively with out truthful and non-misleading details about earnings and different materials phrases,” FTC Bureau of Shopper Safety Director Christopher Mufarrige stated within the press launch.
A Walmart spokesperson informed Reuters that the corporate has compensated affected drivers and is constant to difficulty further funds the place obligatory.
“We worth the laborious work and dedication of the drivers who ship nice service and merchandise to our prospects… We’re repeatedly enhancing procedures to make sure equity and transparency for drivers,” the spokesperson informed the outlet.
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Ferguson informed FOX Enterprise that the end result is not restricted to Walmart.
“Any of the type of gig supply companies that attempt to induce folks to do deliveries by making guarantees about compensation must be trustworthy about these guarantees, and we will maintain everybody to account – not simply Walmart,” he stated.
