CFPB Files Lawsuit Against Walmart and Branch Over Alleged Payment Violations for Gig Drivers - PRESS AI WORLD
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CFPB Files Lawsuit Against Walmart and Branch Over Alleged Payment Violations for Gig Drivers

Credited from: APNEWS

  • The Consumer Financial Protection Bureau (CFPB) has initiated legal action against Walmart and Branch Messenger for violating payment practices involving gig drivers.
  • According to the CFPB, for about two years beginning in 2021, the companies allegedly compelled delivery drivers in Walmart's Spark program to use specific deposit accounts to receive their earnings.
  • This policy reportedly affected 1 million drivers, leading to misleading information concerning access to same-day wages and subsequent fees.
  • The CFPB claims these practices resulted in drivers incurring over $10 million in fees, damaging their earnings.
  • Walmart has rejected the lawsuit as "rushed" and erroneous, asserting a violation of their right to due process, while Branch disputes the CFPB's claims as exaggerated.

For more information, visit the original news article.

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