The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and Branch Messenger, accusing them of violating federal consumer protection laws by forcing delivery drivers in Walmart’s Spark Driver program to use costly deposit accounts. The lawsuit alleges that Walmart and Branch opened accounts for more than one million drivers without their consent, depositing drivers’ pay into these accounts and threatening termination for those who refused to use them. Drivers faced complex processes to access their earnings and were misled about the availability of same-day access. Many experienced delays or incurred fees to transfer their wages to preferred accounts, collectively paying over $10 million in so-called “junk fees.”
CFPB Director Rohit Chopra criticized the companies for exploiting gig economy workers through deceptive practices and unauthorized account openings. The CFPB also alleges that Branch engaged in additional illegal activities, including failing to investigate errors and denying drivers’ requests to stop payments. The lawsuit seeks to halt the companies’ conduct, secure restitution for affected drivers, and impose civil penalties.
