Walmart FTC settlement overview:
- Who: Walmart agreed to pay $10 million to settle allegations it allowed scammers to operate via its wire transfer services defrauding consumers of millions.
- Why: The Federal Trade Commission (FTC) accused Walmart of not implementing effective anti-fraud policies and procedures and not properly training its employees.
- Where: The Walmart FTC settlement was filed in Illinois federal court.
Walmart will pay $10 million to settle FTC charges that it turned a blind eye to scammers who used its in-store money transfer services to take hundreds of millions of dollars from U.S. consumers.
The FTC’s June 2022 complaint alleged that between 2013 and 2018, Walmart, including in its capacity as an agent of MoneyGram, Western Union and Ria, allowed its money transfer services to be used by scammers who defrauded consumers out of hundreds of millions of dollars.
“Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it’s sent, it’s gone for good,” FTC Bureau of Consumer Protection Director Christopher Mufarrige says in a June 20 press release.
“Companies that provide these services must train their employees to comply with the law and work to protect consumers,” he added.
Walmart failed to implement effective anti-fraud policies, FTC claims
According to the complaint, Walmart failed to implement effective anti-fraud policies and procedures, did not properly train its employees and failed to warn customers about potential fraud related to money transfers.
In June 2023, the FTC filed an amended complaint adding further details related to the company’s alleged telemarketing violations.
In July 2024, the district court dismissed the Commission’s Telemarketing Sales Rule claim for the second time, presenting a significant hurdle for the Commission to obtain monetary relief for consumers in the litigation.
In November 2024, the Seventh Circuit Court of Appeals granted Walmart permission to appeal certain rulings by the district court.
The stipulated order announced on June 20 resolves the FTC’s case against Walmart and is intended to ensure the company does not engage in similar alleged conduct in the future.
In addition to imposing the $10 million judgment, the order prohibits Walmart from providing money transfer services without taking timely and appropriate action to effectively detect and prevent fraud-induced money transfers.
The FTC’s vote approving the stipulated final order was 3-0. The FTC filed the proposed order in Illinois federal court.
The FTC recently began issuing millions in refunds to consumers impacted by deceptive business practices, including those involving companies like Amazon, Vonage and Office Depot.
What do you think of the Walmart FTC settlement? Let us know in the comments.
The Walmart FTC settlement case is Federal Trade Commission v. Walmart Inc., Case No. 1:22-cv-03372, in the U.S. District Court for the Northern District of Illinois, Eastern Division.
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200 thoughts onWalmart to pay $10M to resolve FTC claims it allowed money transfer scammers to obtain millions
Please add me. My mother was scammed out of tens of thousands of $$$$$