Another Walmart lawsuit? Yes, there is another one, and this time, it is actually for a different reason, and sure enough, there is one other company in the mix as well, which we know as the Branch Messenger. But why exactly? Well, that’s mainly because they apparently opened bank accounts for their delivery drivers without them even knowing about it all or giving their permission to do so, which seems like a really odd thing to do as such a big company, but yes, that’s why they’re now dealing with this lawsuit which is just getting bigger with every passing day. This time though, yes, Walmart’s Spark Driver program has put them into this overall legal mess, which is not looking good for their reputation, we can say THAT for sure. All of this isn’t fair at all for the gig workers in the country, and that is precisely why we’re seeing this Walmart Branch Accounts Lawsuit in action.
Though, according to the CFPB, Walmart and Branch made it “unreasonably” difficult for drivers to access their wages. Like, in fact, many drivers were not even able to get their pay at all. Also, they imposed secretive charges on them, which is another shady thing going on here. All in all, let’s see where things stand now and what measures Walmart is actually taking.
What Exactly Is This Walmart’s Spark Driver Program?
Alright, before you judge anybody in this case, let us understand this, shall we? So, Walmart’s Spark Driver program works just like any other delivery service, but how? Well, to be honest, it’s a Walmart grocery delivery service like Uber Eats, how do you get it? And just a little bit of history here, well, Walmart began this service in 2018 to take on or compete with already established big players Amazon and Instacart. For this, Walmart hires gig workers, and yes, their vehicles are used for each delivery they make, and they are compensated only for those deliveries. At this point, it all sounds well and good, then where things actually went wrong?
Though, keep in mind that Walmart worked with Branch Messenger, which teamed with Evolve Bank & Trust to create special accounts, to pay these drivers back then. But there was a problem, like, drivers did not get a choice on whether they wanted the account, it wasn’t like an optional thing for them. They had to agree! You know, Walmart and Branch set them up automatically without asking. Like, what if drivers didn’t want to use them? Well, that was not an option for the workers, and that’s the reason why this lawsuit exists in the first place.
What’s the Lawsuit About?
At this point, you must be wondering like: So what exactly is Walmart being accused of? If you have read this post from the get-go, you already know, but still, according to the lawsuit, Walmart and Branch used drivers’ personal information including their Social Security numbers to open accounts without informing them in the first place. Accounts opened? Yes! But the thing is, these account holders didn’t have an actual say in how to handle their accounts.
Another issue? Really, another one? Yes! Walmart and Branch said you’d get access to your pay instantly, but not always, and what was that? Well, just to give you perspective on things, drivers sometimes had to wait weeks to get their pay, and moving their pay to another bank account incurred extra charges. Many drivers had no idea there was a free option, but of course, it takes longer.
All those tiny fees added up to over $10 million. That’s a lot of money, especially when you’re talking about gig workers who pay bills with their earnings.
The CFPB says Branch and Walmart violated multiple important laws including the “Truth in Savings Act” and the “Electronic Fund Transfer Act”. So they must get punished for it, because you know, these rules are there in place to keep people from being pushed into unwanted financial products.
So Far, What Do Walmart and Branch Say?
Well, as many of you could already see it from miles away, yes, unsurprisingly, Walmart and Branch are not taking this lightly. Like, Walmart said: “The complaint is based on faulty legal and factual premises.” Further, the Bureau never gave Walmart a notice nor an opportunity to respond and rectify.” They say their payment system was fair and helpful to drivers, and that they did nothing wrong.
Branch Messenger also defended itself, saying that they were simply trying to make it easier for drivers to get paid quickly. Like, so far, they say the CFPB is exaggerating things and that they seem worse than how they really are. And from the looks of it, yes, they’re going to try to make a big deal out of this thing.
What Happens If They Lose?
Well, this case’s conclusion’s effect can be really simple but it’ll affect these companies in a big way. How? Just so you know, if Walmart and Branch end up losing, they might face hefty monetary penalties in the process, which is how it usually goes. The Bureau wants them to refund drivers impacted and cease any unfair payment practices going forward. However, this case could change things for all gig workers when it comes to reimbursement if Walmart and Branch lose.
And sure enough, other companies that employ gig workers may need to pay more attention to their payment practices. Without a single doubt, if Walmart loses, they may be forced to let drivers choose what bank account their money goes into versus forcing them into one.
Why This Matters for Gig Workers
Gig workers are super important for many companies like Walmart, Uber, Lyft, DoorDash, and many more. And as this case just shows us how a big company is mistreating its workers, this is not a good sign overall. The things that these big companies usually do are purely unfair to these gig workers, and that is precisely what the CFPB is trying to prove. And this lawsuit is a clear indication of just how bad things are when it comes to this matter in the country.
So yes, if the CFPB wins, it could mean better options and more transparency for gig workers everywhere no matter which company they’re currently working for. And sure enough, once again, we’ll say that it’ll also be a highlight for the lawmakers to never let these things slide easily, there must be some strict rules to protect the interest of these gig workers.