The Consumer Financial Protection Bureau (CFPB) is suing Walmart and financial technology platform Branch Messenger, accusing them of forcing delivery drivers on Walmart’s Spark platform to use specific deposit accounts to receive payment. According to the CFPB’s Dec. 23, 2024, press release, this led workers to pay over $10 million in fees to transfer their earnings to their preferred accounts.
The lawsuit claims that Walmart informed Spark drivers that they were required to use Branch’s deposit accounts and would face termination if they refused. The CFPB also alleges that Walmart misled workers about the availability of same-day access to their earnings and made the process of accessing funds unnecessarily complex, which resulted in “junk fees.” CFPB Director Rohit Chopra criticized Walmart for making false promises and taking advantage of over a million delivery drivers by forcing them into accounts that drained their earnings with these fees.
The lawsuit claims that Walmart and Branch violated federal law starting in 2021. In addition to accusations against Walmart, the CFPB also targets Branch, which offers a deposit account through Evolve Bank & Trust, accusing the company of engaging in illegal practices. These include requiring consumers to waive their legal rights and failing to investigate errors, honor stop-payment requests, and maintain necessary records.
In response, Walmart stated that the CFPB’s lawsuit was rushed and filled with factual inaccuracies, arguing that the investigation did not allow the retailer a fair opportunity to present its case. Branch also disputed the allegations, claiming the lawsuit misrepresents the law and facts, and accusing the CFPB of overreach. Both companies emphasized their cooperation with the investigation but criticized the CFPB’s decision to move forward with the lawsuit.
This legal action follows a strong year for Walmart’s grocery e-commerce business, with the retailer capturing nearly 40% of grocery e-commerce spending in the second quarter of 2024.
