Walmart is facing a lawsuit over how it paid delivery drivers using the company’s Spark Driver platform.
Spark Driver allows gig workers to make deliveries to Walmart customers nationwide. This week, the Consumer Financial Protection Bureau accused Walmart and the tech company Branch Messenger of making false promises and taking advantage of more than a million drivers. The CFPB claims Walmart and Branch Messenger violated federal law by illegally opening Branch accounts for nearly 100,000 drivers from 2021 to 2023.
The CFPB also alleged that drivers complained about their earnings being withheld until they accepted Branch's terms of agreement.
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Walmart allegedly required Spark drivers to use their Branch Messenger accounts to access their earnings or face termination. In doing so, the agency says Spark drivers paid more than $10 million in junk fees to Branch to transfer their earnings to an account of their choice. The CFPB said that for drivers to be allowed to instantly access their earnings, they were required to pay 2% of the transferred amount or $2.99, whichever was greater, to Branch.
If drivers wanted to avoid fees, they had to wait up to five days to have their money transferred, the CFPB alleged.
The director of the CFPB says companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.
“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” said CFPB Director Rohit Chopra. “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.”
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Walmart disputed the CFPB's findings.
"The CFPB’s rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law. The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation," the company said. We look forward to vigorously defending the Company before a court that, unlike the CFPB, honors the due process of law."
