Walmart has agreed to pay $10 million to settle allegations from the Federal Trade Commission (FTC) that it allowed scammers to exploit its in-store money transfer services, resulting in hundreds of millions of dollars being taken from U.S. consumers.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the importance of vigilance in electronic money transfers: “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. Companies that provide these services must train their employees to comply with the law and work to protect consumers.”
The FTC's complaint from June 2022 claimed that between 2013 and 2018, Walmart permitted its money transfer services—acting as an agent for MoneyGram, Western Union, and Ria—to be used by scammers. These actions allegedly defrauded consumers out of significant sums due to inadequate anti-fraud measures and insufficient employee training. An amended complaint filed in June 2023 added details about alleged telemarketing violations by Walmart. However, in July 2024, a district court dismissed the FTC's Telemarketing Sales Rule claim for a second time. The Seventh Circuit Court of Appeals later allowed Walmart to appeal certain district court rulings.
The resolution announced aims to prevent future similar conduct by Walmart. The stipulated order includes a $10 million judgment against Walmart and prohibits the company from engaging in several specific activities related to fraudulent money transfers.
The FTC's Commission vote on this final order was unanimous at 3-0. The proposed order was filed with the U.S. District Court for the Northern District of Illinois, Eastern Division.
Stipulated final orders or injunctions become legally binding when approved by a District Court judge.
The Federal Trade Commission continues its mission to promote competition while protecting and educating consumers about potential scams and fraudulent practices.
