In a new legal challenge to the treatment of gig workers, the Consumer Financial Protection Bureau (CFPB) has sued Walmart and fintech company Branch Messenger, accusing them of illegally opening deposit accounts for more than a million delivery drivers without their consent. The complaint, announced Monday, alleges that the companies used drivers’ personal information, including Social Security numbers, to establish accounts without authorization and required workers to use these accounts to access their paychecks.
The lawsuit centers on Walmart’s Spark Driver program, where independent contractors deliver packages from Walmart’s warehouses to customers. According to the CFPB’s complaint, these drivers were compelled to accept payments exclusively through Branch Messenger accounts, leaving them no alternative. Since 2021, the complaint says, Walmart informed drivers that refusing to use the accounts could result in termination.
The CFPB alleges that this practice violated federal consumer protection laws, as workers were coerced into utilizing a financial service that incurred costs and potentially exposed them to additional fees. This, the agency claims, undermines drivers’ financial autonomy and further exacerbates the precarious position of gig workers, who often face limited benefits and protections.
“These workers were forced to accept terms that were neither transparent nor voluntary,” said CFPB Director Rohit Chopra in a statement. “Companies cannot exploit workers by compelling them to use costly financial products.”
The lawsuit against Walmart and Branch Messenger also sheds light on the broader issue of gig worker rights. In recent years, the classification of gig workers as independent contractors has sparked significant debate. Gig workers employed by platforms such as Uber, Lyft, and DoorDash have long called for clearer legal protections, fair compensation practices, and official reclassification as employees, which would grant access to benefits like health insurance, sick leave, and retirement plans.
The CFPB’s lawsuit is the latest effort under the Biden administration to address systemic financial abuses. Earlier this month, the agency also sued JPMorgan Chase, Bank of America, and Wells Fargo, alleging they failed to prevent fraud on the widely used money-transfer app Zelle. These cases highlight growing federal scrutiny of financial practices that disproportionately affect vulnerable populations, including gig workers and low-income individuals.
Walmart and Branch Messenger have yet to issue detailed responses to the allegations. However, legal experts suggest the case could set a precedent for holding corporations accountable for their treatment of independent contractors and the financial products offered to them.
The lawsuit underscores the unique challenges faced by gig workers, who often lack bargaining power in an increasingly app-driven economy. By limiting payment options to accounts with potential fees, critics argue that companies like Walmart impose additional financial burdens on workers already operating on thin margins.
As the legal process unfolds, this case will likely amplify calls for stronger worker protections and greater accountability for companies in the gig economy. For now, Walmart and Branch Messenger face mounting pressure to address the allegations, which could have far-reaching implications for the treatment of gig workers nationwide.
