Federal consumer watchdog drops lawsuit against Walmart

The CFPB sued the mass retailer and Branch Messenger at the end of last year, claiming the companies illegally opened accounts for Spark drivers and then deposited their pay into them without consent.

Federal consumer watchdog drops lawsuit against Walmart
Walmart employee completing a delivery. · Source: Grocery Dive

Grocery Dive reported the development on 2025-05-16. The CFPB sued the mass retailer and Branch Messenger at the end of last year, claiming the companies illegally opened accounts for Spark drivers and then deposited their pay into them without consent.

The report places the news in a wider commercial context. The Consumer Financial Protection Bureau dropped its delivery driver payment lawsuit against Walmart and the financial technology platform Branch Messenger. The case was dismissed on Wednesday in a federal district court in Minnesota “with prejudice,” according to court filings.

For the food sector, the practical implications extend beyond the immediate announcement. These actions led to workers paying more than $10 million in fees to transfer their earnings to an account of their choice, according to CFPB’s initial filing against the companies. “We are pleased with the decision to dismiss the case. As we said from the start, the CFPB’s rushed lawsuit was riddled with factual errors and misguided claims. It should never have been.

Attention now turns to how companies, customers and regulators respond. In a separate email, Branch noted that CFPB dismissing the case with prejudice “reinforces [its] belief that the case lacked merit.”. CFPB did not respond to a request for comment by press time.

Original source

Grocery Dive

https://www.grocerydive.com/news/walmart-branch-messenger-CFPB-lawsuit-delivery-labor-dismissed/748311/

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