NEW YORK — The Consumer Financial Protection Bureau (CFPB) has initiated legal action against Walmart and the work scheduling platform Branch Messenger. The lawsuit claims that these companies compelled delivery drivers involved in Walmart’s gig program to utilize expensive deposit accounts for payment, while also misrepresenting the process by which they could access their wages.

According to the CFPB, Walmart and Branch violated federal regulations for about two years starting in 2021, by mandating that one million drivers participating in the so-called Spark program, which facilitates deliveries from Walmart locations across the country, use Branch for payment. Workers who opted not to use these accounts reportedly faced termination from their jobs.

Moreover, the agency asserts that the companies misled drivers regarding the immediacy of wage access. It stated that the process was unnecessarily complicated, and even after completing it, drivers often encountered delays or incurred fees when transferring their earnings to preferred accounts.

As a result of these practices, over $10 million in fees were reportedly paid by workers. CFPB Director Rohit Chopra condemned the actions of Walmart, stating, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers. Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.”

In a response issued via email, a Walmart representative characterized the lawsuit as “rushed,” claiming it was filled with inaccuracies, exaggerations, and incorrect statements concerning established legal principles. The statement read, “The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation. We look forward to vigorously defending the company before a court that, unlike the CFPB, honors the due process of law.”

Branch Messenger, which operates out of Minneapolis, also issued a statement indicating strong disagreement with the CFPB’s claims. They argued that the lawsuit misrepresents both legal and factual aspects and includes deliberate omissions to obscure what they described as the bureau’s obvious overreach. The statement elaborated that Branch has been offering valuable services to Walmart and its drivers, facilitating quick and convenient access to funds through their business accounts, a detail they noted was excluded from the bureau’s press release.