Penalty Amount
$13,000,000
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.
Walmart must pay over $13 million, with half going directly to affected Texas delivery drivers. The company is also required to implement transparent and accurate compensation practices, and the Texas OAG will continue to review records and marketing materials to ensure compliance.
In-house legal teams should review independent contractor agreements and vendor agreements with gig economy platforms, focusing on compensation clauses, tip distribution policies, and marketing representations. Key clauses to examine include: how base pay is calculated and whether it can be altered after acceptance, how customer tips are passed through to drivers, and the accuracy of incentive earnings descriptions. Teams should also audit marketing materials and driver-facing communications for consistency with contractual promises, and ensure there are clear audit rights and reporting requirements to verify compliance with compensation commitments.
Entity
Walmart, Inc.
Industry
RetailOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-secures-over-13-million-walmart-ensure-delivery-drivers-receive-fair
Walmart
https://www.texasattorneygeneral.gov/sites/default/files/images/press/Walmart.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"Walmart, Inc."
"over $13 million"
"Walmart made false representations to drivers regarding their pay, including pre-tips selected by customers at checkout, base pay, and special incentive earnings opportunities"
"Half of this amount has been paid out directly to delivery drivers affected by Walmart’s deceptive marketing and practices"
"The settlement also requires that Walmart takes measures to ensure that drivers get paid fairly and in line with what is being marketed to them"
$100.0M
The FTC and 11 states settled with Walmart for $100 million over deceptive earnings claims in its Spark Driver gig worker app, where drivers were misled about base pay, tips, and incentives. The settlement also addressed GLBA violations for failing to provide proper notice regarding the handling of drivers' financial information. Walmart must implement an earnings verification program and is banned from misrepresenting driver earnings.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.
Texas Attorney General Ken Paxton announced an agreement with Plum Organics requiring stronger testing and limits for heavy metals in covered baby food products, along with publicly accessible testing results. The release does not state a monetary penalty; the agreement follows an ongoing investigation into baby food manufacturers.
Texas Attorney General Ken Paxton opened an investigation into Blue Cross and Blue Shield of Texas, its parent Health Care Service Corporation, and related entities over alleged denials or delays of urgent and medically necessary care and potentially burdensome prior authorization requirements. The investigation is ongoing; the Attorney General issued a Civil Investigative Demand to obtain information and assess potential violations of Texas law.
Texas Attorney General Ken Paxton issued a consumer alert warning Texas businesses and nonprofits about a surge of demand letters alleging California Invasion of Privacy Act (CIPA) violations based on common website technologies such as cookies, pixels, and analytics tools. The AG cautions that some letters may exaggerate or misrepresent violations and may be fraudulent, noting serial CIPA plaintiff Vivek Shah has been declared a vexatious litigant. Recipients are advised not to pay or respond directly, to consult privacy counsel, and to report suspected fraud to the Consumer Protection Division.
A Texas state district court (Judge Cory Liu) has found TikTok liable for lying to parents about the safety of its platform and for exposing children to inappropriate and explicit content, making Texas the first state in the nation to hold TikTok liable on these claims. The court found that although TikTok claimed it would remove graphic videos depicting drugs, nudity, alcohol, injuries, and profanity, such videos remained accessible to minors, even under 'Restricted Mode.' No penalty has been imposed yet; Attorney General Paxton will proceed to trial, expected next month, where relief and penalties will be determined.