U.S. consumer bureau sues Walmart

Walmart Inc. and one of its financial technology partners allegedly opened expensive bank accounts for delivery drivers without their consent, a U.S. consumer protection agency said on Monday.

The Consumer Financial Protection Bureau sued Walmart and Branch Messenger Inc., claiming they required those in the Spark Driver program to be paid through costly accounts or be fired.

“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” CFPB Director Rohit Chopra said in a statement after the agency sued the two companies in the U.S. District Court for the District of Minnesota.

Neither Walmart nor Branch Messenger responded to a request for comment.

It’s the latest enforcement action for the CFPB, which has cranked up its pace in the waning days of the Biden administration. The agency sued three of the country’s largest banks over their handling of Zelle fraud and finalized an overdraft fee cap this month.

The CFPB said Walmart required the delivery drivers to use Branch Messenger, a fintech that offers workers deposit accounts and debit cards through their employers. Branch Messenger partners with Evolve Bank & Trust to offer those accounts. Evolve has been recently scrutinized for its fintech-bank partnerships due to the relationship it had with the firm Synapse Financial Technologies Inc., which went bankrupt earlier this year.

Amazon Teamsters strike hits Day 5

With Christmas two days away, workers at four Amazon warehouses in Southern California remained on strike Monday on claims the corporate giant refuses to recognize their union and negotiate fair contracts.

The International Brotherhood of Teamsters, representing 1.3 million workers across the U.S., Canada and Puerto Rico, announced their members in Palmdale, Victorville, City of Industry and San Bernardino voted to authorize strikes — a move that came after Amazon ignored a deadline on Dec. 15 to come to the bargaining table, according to the union.

Amazon workers represented by the union went on strike at 3 a.m. Thursday and joined Amazon union workers across the country who also went on strike.

Eileen Hards of Amazon said in a statement that for more than a year, the Teamsters have continued to intentionally mislead the public — claiming they represent “thousands of Amazon employees and drivers” when they don’t.

Container Store files for bankruptcy

The Container Store has filed for bankruptcy protection as the storage and organizational goods retailer with roots dating back to the 1970s grapples with mounting losses and cash flow shortages.

The Texas company has faced increasing competition from retailers like Target and Walmart at the same time that demand for its goods is under strain in a rough housing market, where soaring prices and elevated mortgage rates have stunted sales.

Under Chapter 11 protection, The Container Store will continue to operate while it restructures. The chain has stores in Costa Mesa and seven other locations throughout Southern California.

The company said Sunday that it had filed for bankruptcy protection in Texas.

Compiled from Associated Press, City News Service and Bloomberg reports.