Uncle Sam Accuses Walmart of Stealing $10 Million from Delivery Drivers

Looks like Walmart’s been caught with crumbs on its face. Uncle Sam (via the Consumer Financial Protection Bureau) just busted the retail giant for allegedly playing dirty with over a million delivery drivers’ paychecks. The CFPB filed a lawsuit on Monday, claiming Walmart and its partner in crime, Branch Messenger, pulled a fast one on their gig workers by forcing them into shady deposit accounts stuffed with fees, delays, and confusion.

“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” CFPB Director Rohit Chopra said. In other words… “You’ve been caught, and it’s not a good look.”

This isn’t just your average whoopsie. Since 2021, Walmart and Branch allegedly opened deposit accounts for Spark Drivers—Walmart’s fleet of gig workers—without bothering to ask for consent. Using drivers’ personal information (like Social Security numbers), they funneled paychecks into these accounts and told workers to like it or leave.

Drivers who dared question the setup were apparently threatened with the gig economy’s version of death: termination. And those who played along? They were rewarded with surprise fees, transfer limits, and delays when trying to move their hard-earned cash into their own accounts. Over two years, this little stunt reportedly drained more than $10 million in “junk fees” from workers.

“Instant access to your money” turned out to mean eventually… if you navigated a maze of headaches and more delays than Elon’s cybertruck reveal.

In typical corporate fashion, Walmart called the lawsuit overblown. “The CFPB’s rushed lawsuit is riddled with factual errors,” the company said in a statement. In other words: “We didn’t do it, and if we did, you can’t prove it.”

Branch wasn’t shy about fighting back either, calling the lawsuit an “overreach” and accusing the CFPB of intentionally misrepresenting the facts. The CFPB has been on a tear lately. They’ve recently gone after Rocket Homes, Zelle, Bank of America, JPMorgan Chase, and others for mishandling consumer accounts and ignoring fraud complaints. Apparently, big companies treating money like Monopoly cash is becoming a trend.

For Walmart, the stakes are high. As one of the largest private employers in the U.S., its Spark Driver program is supposed to be a shining example of gig economy success. But this lawsuit claims the reality is more like being stuck in a bad episode of “Shark Tank” where every offer involves hidden fees.

For now, Walmart and Branch are lawyering up and hoping they can roll back these allegations. This case could be the slap on the wrist the gig economy desperately needs to start playing fair. In the meantime, Spark Drivers might want to keep a close eye on their paychecks… and maybe an extra one on the fine print. But hey, at least Walmart’s staying true to their brand: keeping costs low… even when it’s at their drivers’ expense.

PS: Want the ultimate Christmas gift? How about the power to spy on insider trades of any publicly listed company? That way, you can stop being the sucker left holding the bag when the insiders cash out. All it takes is a Stocks.News Premium membership (seriously, it’s cheaper than HBO Max). Go here and start legally piggybacking the insider’s trades.

Oh, and Merry Christmas ya filthy animal!

Stock.News has positions in Walmart, Bank of America, Rocket, and JP Morgan Chase mentioned in article.