CFPB Files Lawsuit Against Walmart and Branch Messenger Over Alleged Payment Violations

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and Branch Messenger, accusing them of unlawful practices related to paying drivers in Walmart’s Spark delivery program. Allegations include forcing gig workers to use costly Branch accounts, misrepresenting same-day wage access, and penalizing workers who sought alternative payment methods. These actions, the CFPB claims, led to workers incurring over $10 million in fees.

Walmart’s Spark program utilizes gig workers to handle last-mile deliveries nationwide. According to the CFPB, from 2021 onward, Walmart required nearly a million drivers to use Branch accounts for payment. Drivers were allegedly threatened with termination if they refused. Additionally, the agency contends that the promised quick access to wages was misleading, as drivers faced delays and fees to transfer earnings to other accounts.

Walmart has denied the allegations, calling the lawsuit rushed and riddled with inaccuracies, while Branch has criticized the CFPB for overreach and omitting critical facts. Both companies have vowed to defend their practices in court.

The case highlights the growing scrutiny of payment methods and fees in the gig economy, raising questions about employer transparency and worker rights.