BENTONVILLE, Ark. — Walmart says it is taking new steps to strengthen the integrity of its digital platforms and expand its online assortment, while acknowledging the persistent challenges of counterfeiting and fraud that the broader retail industry faces.
The company, which has made significant investments to grow Walmart.com and its third-party Marketplace, now offers more than 500 million items online. The expanded assortment includes a mix of everyday essentials and premium brands, sourced from a diverse range of sellers. But the company acknowledges that growth comes with new risks.
“Bad actors seek to mislead and defraud customers in a rapidly changing environment,” the company stated in a release, noting that while counterfeit goods make up a small portion of online listings, they pose a growing threat to consumer trust and marketplace integrity.
To address the issue, Walmart says it has implemented a multi-layered enforcement system to detect and remove counterfeit listings:
- Seller vetting prior to onboarding, including identity and business verification, with ongoing compliance reviews.
- Pre-listing protections such as restricting who can sell certain categories.
- AI-driven and real-time monitoring of product listings for policy compliance, intellectual property infringement, overseen by machine learning, automation and human management.
- Clear policies with swift enforcement measures, including proactive removal of violating listings and, when necessary, removal of sellers.
- Rapid response capabilities enabling our Trust & Safety team to investigate and address violations quickly.
- Brand protection tools that allow owners to flag and it is resolved quickly.
- Customer-centric policies, including convenient store-based returns for Marketplace items.
- Educating sellers to meet and maintain high standards.
Walmart’s strategy also involves collaboration with public and private sector entities. The retailer says it is backing federal legislation, including the INFORM Consumers Act and the proposed SHOP SAFE and Combating Organized Retail Crime acts. It is also collaborating with agencies such as Homeland Security Investigations and the FBI, and shares intelligence with other retailers through the Anti-Counterfeiting Exchange.
Efforts include:
- Championing the Integrity, Notification, and Fairness in Online Retail Marketplaces (INFORM) Consumers Act — landmark legislation signed into law in 2023 to increase transparency and accountability in online marketplaces.
- Leading advocacy for the Combating Organized Retail Crime Act (CORCA) to establish a coordinated federal response to retail theft.
- Engaging in Congressional roundtables and dialogue on the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-commerce (SHOP SAFE) Act, aimed at curbing the sale of unsafe counterfeit goods online.
- Collaborating with the Department of Homeland Security (DHS) to develop the anti-counterfeit best practices outlined in its 2020 Combatting Trafficking in Counterfeit and Pirated Goods report.
- Partnering with Homeland Security Investigations (HSI), the National Intellectual Property Rights Coordination (IPRC), and the Federal Bureau of Investigation (FBI) to target bad actors and strengthen enforcement.
- Joining forces with State Attorneys General and law enforcement task forces to help thwart organized retail theft.
- Working closely with organizations like the Retail Industry Leaders Association (RILA), Buy Safe America Coalition, National Retail Federation (NRF), Information Technology and Innovation Foundation (ITIF) and U.S. Chamber of Commerce (USCC) to promote marketplace integrity and safety.
- Sharing intelligence on bad actors with other retailers and marketplace platforms through the Anti-Counterfeiting Exchange.
- Serving on the Marketplace Advisory Council of the International AntiCounterfeiting Coalition (IACC).
As Walmart continues to scale its e-commerce presence, the company contends that trust is a key differentiator. “The future of eCommerce depends on shared responsibility to uphold customer trust,” the company noted. “At Walmart, we’re committed to delivering on it.”
