Walmart details efforts to keep its online marketplace secure
Walmart is taking aggressive action towards fraudulent sellers who seek to defraud customers with counterfeit items.
The retail giant noted that while counterfeits are estimated to represent a tiny minority of the products sold, it is an issue that plagues all retail marketplaces.
“Counterfeits have always been a challenge in retail, and online marketplaces are no exception,” Walmart stated. “But today’s bad actors are more sophisticated, using technology to scale their operations faster than ever. “
To keep Walmart.com secure, the retailer said it operate a multi-layered enforcement system with “zero tolerance” for bad actors. Its efforts include AI-driven and real-time monitoring of product listings for policy compliance, and intellectual property infringement, overseen by machine learning, automation and human management.
The company also vets sellers prior to onboarding, including identity and business verification, with ongoing compliance reviews, and has pre-listing protections such as restricting who can sell certain categories.
Other measures include:
- 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; and
- Educating sellers to meet and maintain high standards.
“These systems are continually enhanced and strengthened to protect consumers from the latest threats facing every open marketplace,” Walmart stated. “When issues arise, our dedicated Trust & Safety team acts swiftly to investigate and resolve issues, alongside the many sellers who act with integrity on our site every day.”
The retailer noted that fraudulent sellers have grown more sophisticated, using technology to scale their operations faster than ever, which is why strong, coordinated action between the public and private sector is essential for tackling the evolving threat. Its 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, the company said.
Other efforts include leading advocacy for the Combating Organized Retail Crime Act (CORCA) to establish a coordinated federal response to retail theft, and joining forces with State Attorneys General and law enforcement task forces to help thwart organized retail theft.
To read more about Walmart's efforts in this area, click here.
