Walmart has reached a settlement in a biometric privacy lawsuit related to its Spark delivery platform, resolving allegations that its identity verification practices violated user privacy rights. The settlement comes just weeks before a trial was set to begin in June. Terms of the agreement have not been disclosed.
Privacy Allegations and Regulatory Landscape
The lawsuit, originally filed in May of last year, accused Walmart of collecting and storing biometric data from individuals participating in its Spark delivery service without providing proper disclosure or obtaining informed consent. These practices were alleged to violate the Illinois Biometric Information Privacy Act (BIPA), a state law that imposes strict requirements on companies using technologies like facial recognition or fingerprint scanning. BIPA mandates that companies obtain written consent, inform individuals of how their biometric data will be used and retained, and refrain from profiting from such data.
Walmart previously agreed to a $10 million settlement in 2021 over similar claims involving employee fingerprint data used for timekeeping. More recently, Walmart has faced additional lawsuits related to biometric data collection practices in both employee and customer-facing contexts, including in-store facial recognition systems and app-based driver verification tools.
Technology Use and Industry Trends
Walmart’s use of biometric technology is not new. In 2018, the company was granted a patent for a blockchain-based biometric healthcare system, and in 2023 it began implementing biometric verification systems for fraud prevention in its delivery operations. These systems are designed to authenticate drivers through facial recognition or video selfies to ensure that only authorized users access the Spark platform.
Such tools are increasingly common across the delivery and gig economy sectors. Companies including Amazon, DoorDash, and Uber Eats also deploy biometric verification to manage fraud risks and verify driver identity. However, these implementations have led to a growing number of legal challenges over privacy rights, especially in jurisdictions with strong biometric protections like Illinois.
Legal Risk and Industry Response
The resolution of the Spark lawsuit highlights a growing pattern among companies choosing to settle biometric privacy claims before they reach trial. These settlements often avoid public scrutiny of internal data practices and mitigate the risk of larger financial penalties. At the same time, they reflect the ongoing tension between deploying advanced identity verification tools and maintaining compliance with evolving privacy protection requirements.
Walmart has not commented on whether the settlement includes changes to its data collection policies or identity verification processes. Any revisions to policy or compensation to affected parties may emerge in future court filings.
Sources: USA Herald, Law360
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May 14, 2025 – by Ji-seo Kim
