It's A Domino Effect,' Walmart's Marketplace Boom Has Led To An Increase In Counterfeit Retailers

Benzinga

Walmart’s fast-growing marketplace faces fraud risks, with CNBC uncovering dozens of counterfeit cases tied to weak vetting of third-party sellers. Critics say oversight is lacking, while Walmart insists it has zero tolerance for fakes.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Walmart's digital marketplace has expanded rapidly, but a CNBC investigation found that

00:07growth has come with risks. The company relaxed vetting of third-party sellers has allowed

00:11fraudulent vendors to post those legitimate businesses, with at least 43 cases uncovered.

00:15A Walmart marketplace customer unknowingly purchased counterfeit supplements,

00:19highlighting risks tied to fraudulent third-party sellers. A legitimate company said this scam has

00:23created an endomino effect with repeated fraudulent returns, while the manufacturer launched an

00:27investigation to protect consumers. A Walmart employee told CNBC that staff were pressured to

00:32improve sellers, despite rag flags. Walmart maintains that it forces a zero-tolerance policy

00:37on counterfeiters, but critics argue the platform resembles a flea market due to inadequate oversight.

00:43For all things money, visit Benzinga.com.

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