Walmart and Branch Messenger sued over alleged illegal payment practices

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and payroll service Branch Messenger, accusing them of forcing gig workers into unauthorised payment systems with excessive fees. The lawsuit alleges that Walmart opened direct deposit accounts for Spark delivery drivers without consent, using their social security numbers. These accounts imposed transaction fees of at least $2.99 per payment and offered no alternative payment methods, despite repeated promises of same-day payments since 2021.

CFPB Director Rohit Chopra criticised Walmart for allegedly exploiting more than a million delivery drivers, stating that companies cannot compel workers to accept payment methods that reduce their earnings. The lawsuit, filed in the United States District Court for Minnesota, seeks to hold both companies accountable for what the agency calls deceptive and abusive practices. Spark drivers had long raised concerns over being required to use Branch accounts, with Walmart allegedly threatening job termination for non-compliance.

The lawsuit highlights violations of the Consumer Financial Protection Act of 2010, asserting that these practices were unfair and abusive. The CFPB aims to secure redress for affected workers and set a precedent against such corporate behaviour.