Lawsuit Targets Walmart’s Spark Program and Branch Messenger
The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and work scheduling platform Branch Messenger, accusing them of violating federal law in connection with the pay practices for delivery drivers in Walmart’s Spark program. The lawsuit alleges that from 2021 onward, Walmart and Branch forced approximately 1 million gig workers to use deposit accounts provided by Branch in order to get paid, threatening termination for those who refused.
Allegations of Misleading Drivers About Wage Access
The CFPB also claims that Walmart and Branch misrepresented how workers could access their earnings, misleading drivers about the availability of same-day pay. The agency stated that workers were subjected to a complex process to access their funds, with delays and additional fees if they sought to transfer money into an account of their choice. The practice allegedly cost workers over $10 million in fees.
CFPB Director Accuses Walmart of Exploiting Workers
CFPB Director Rohit Chopra expressed strong condemnation of Walmart’s actions, saying in a statement, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers. Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.”
Walmart Responds, Calls Lawsuit “Rushed” and “Misleading”
In response to the lawsuit, a Walmart spokesperson called the CFPB’s action “rushed” and said it was “riddled with factual errors” and “blatant misstatements of settled principles of law.” Walmart’s statement criticized the CFPB for not providing the company a fair opportunity to present its case and vowed to vigorously defend the company in court.
Branch Denies Misconduct, Disputes Lawsuit Claims
Branch Messenger also rejected the CFPB’s accusations, stating that the lawsuit misrepresents the law and facts while intentionally omitting key details. In its own statement, Branch argued that it provided valuable services to Walmart and its drivers, allowing them quick and easy access to their funds—something the CFPB’s release allegedly failed to acknowledge.
The lawsuit brings attention to the growing scrutiny of gig economy companies and their treatment of workers, particularly regarding pay practices and fees. With both Walmart and Branch rejecting the accusations, the case is expected to proceed to court, where both sides will present their arguments.
