Walmart has been expanding and amplifying measures to fend off fraudulent sellers on the Walmart Marketplace.
To deal with fraud, Walmart has developed a multi-layered enforcement system with zero tolerance for bad actors. Among the actions Walmart has taken are:
- 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 and intellectual property infringement overseen by machine learning, automation and human management.
- Clear policies with swift enforcement measures that include proactive removal of violating listings and, when necessary, removal of sellers.
- Rapid response capabilities enabling the company’s Trust & Safety team to investigate and address violations quickly.
- Brand protection tools that allow owners to flag violations and get quick compliance resolutions.
- Customer-centric policies including convenient store-based returns for marketplace items.
- Educating sellers to meet and maintain high standards.
Walmart reported it is continually enhancing and strengthening the system it has established to protect consumers from the latest threats facing every open marketplace. When issues arise, a dedicated Trust & Safety team investigates and resolves issues, Walmart added.
Counterfeits are among the challenges retailers face as they deal with retail fraud, Walmart stated, and bad actors have become more sophisticated, using technology to scale their operations faster than ever. The situation requires strong, coordinated action between the public and private sector is essential for tackling the evolving threat. This has caused Walmart to champion the Integrity, Notification, and Fairness in Online Retail Marketplaces, or INFORM Consumers Act, landmark legislation signed into law in 2023 to increase transparency and accountability in online marketplaces. The company is acting in support of the Combating Organized Retail Crime Act, or CORCA, which would establish a coordinated Federal response to retail theft as well as engaging in Congressional roundtables and other dialogue regarding the Stopping Harmful Offers on Platforms by Screening Against Fakes in E-commerce, or SHOP SAFE Act.
In addition, Walmart is collaborating with the Department of Homeland Security to develop anti-counterfeit best practices as outlined in its 2020 Combating Trafficking in Counterfeit and Pirated Goods report, the company stated. It is partnering with Homeland Security Investigations, the National Intellectual Property Rights Coordination and the Federal Bureau of Investigation to target bad actors and strengthen enforcement. The retaileralso has joined business organizations to promote marketplace integrity, including the Retail Industry Leaders Association, Buy Safe America Coalition, National Retail Federation, Information Technology and Innovation Foundation and United States Chamber of Commerce. Beyond that, Walmart is sharing intelligence on bad actors with other retailers and marketplace platforms through the Anti-Counterfeiting Exchange and participating in the Marketplace Advisory Council of the International AntiCounterfeiting Coalition.
On a more local level, Walmart is coordinating with state attorneys general and law enforcement task forces to help thwart organized retail theft.
The future of e-commerce depends on shared responsibility to uphold customer trust, Walmart observed. Growth hinges on integrity, fair play, consistent standards and a level playing field, attracting quality sellers and loyal customers. In today’s retail landscape, Walmart said, trust is a competitive advantage. The company’s actions indicate that maintaining consumer trust and growing operations online and in-store will require diligence and investment as shoppers may not think so highly of the many positive interactions they’ve had with a retailer when they have a bad experience due to retail-related crime.
