The Consumer Financial Protection Bureau (CFPB) is suing Walmart, alleging it illegally forced gig workers to use a payroll service provider’s accounts with excessive fees. The agency claims Walmart opened direct deposit accounts using Spark delivery drivers’ social security numbers without consent and promised same-day payments but failed to deliver on that promise.
According to the CFPB, Walmart required Spark Drivers to receive their compensation in Branch Accounts, which came with fees of 2% or $2.99 per transaction, whichever was higher. This practice allegedly started around June 2021 and went on for approximately two years. The agency says this is a clear violation of the Consumer Financial Protection Act of 2010.
The CFPB Director Rohit Chopra stated that Walmart made false promises, opened accounts without consent, and took advantage of more than a million delivery drivers. Companies cannot force workers into using accounts with high fees, he said. The agency sued both companies in the US District Court for the District of Minnesota.
Source: https://www.theverge.com/2024/12/23/24328046/walmart-spark-delivery-lawsuit-branch-instant-payment