The US government sued Walmart for violating the privacy of more than 1 million drivers and charged it $10 million in fees

It is learned that recently, the U.S. Consumer Financial Protection Bureau (CFPB) sued Walmart for $10 million, accusing it of colluding with the financial technology company Branch Messenger to illegally open bank accounts using the personal information of more than 1 million drivers, forcing them to use Branch bank accounts to receive wages, and charging high fees of more than $10 million.

According to the CFPB's statement, Walmart and Branch have opened bank accounts for more than 1 million drivers since 2021. The lawsuit pointed out that in order to receive wages, drivers were told that they must use Branch accounts, otherwise they would face the risk of being fired. It is understood that even drivers who did not agree to open accounts have their wages deposited into these accounts in advance, and the process of obtaining wages is extremely complicated, and some drivers have to wait for weeks to get paid.

The complaint further stated that drivers often encountered transfer delays or were charged additional fees when using the platform, resulting in drivers paying more than $10 million in fees on the platform.

Despite facing the lawsuit, Walmart denied all allegations, saying that the CFPB's lawsuit was full of "factual errors" and "exaggerations", and that the bureau did not give the company a fair opportunity to defend itself during the investigation. Walmart will firmly defend the company's rights and interests through legal procedures.

In addition, Branch also refuted the lawsuit, calling the CFPB's allegations "inaccurate" and criticizing the bureau for not communicating effectively with it during the investigation. Branch said the CFPB's lawsuit "misinterpreted the law and facts" and claimed that the bureau was eager to file the lawsuit and ignored the facts and legal procedures.

Author✎ Summer/
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