Walmart has agreed to pay $100m (£74.1m) to settle claims that it misled gig workers who signed up to deliver packages for the company about the pay and tips they would receive.

The deal was announced by the Federal Trade Commission (FTC) and a group of 11 states, of leaving the drivers on its Spark Driver app tens of millions of dollars out of pocket.

The company also falsely told customers that their tips would go completely to drivers, according to the complaint.

Walmart said it was improving its systems to "ensure fairness and transparency" and had already started making payments to people who had been affected.

Delivery drivers are due to receive $79m worth of payouts from the settlement, according to FTC leaders. Walmart did not respond to a question about how much on average each driver would receive.