Walmart hit with $10 million fine after allegedly enabling wire fraud
The settlement follows a years-long investigation by the FTC, which claimed that Walmart failed to implement sufficient anti-fraud safeguards, including proper employee training and customer alerts.
According to the agency, these lapses enabled fraud-induced money transfers between 2013 and 2018 through Walmart's services and those operated in partnership with MoneyGram, Western Union, and Ria.
The FTC initially filed its complaint in June 2022 and amended it a year later to include alleged violations of the Telemarketing Sales Rule. A federal district court ultimately dismissed the telemarketing-related claims in July 2024.
However, in November 2024, the Seventh Circuit Court of Appeals granted Walmart permission to appeal parts of the district court's rulings related to the core fraud claims.
Under the terms of the final order, approved unanimously by the Commission in a 3-0 vote, Walmart must comply with a series of new requirements designed to prevent similar fraud schemes in the future. These provisions prohibit the company from:
More information about the settlement and the final order is available on the FTC's official website.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
44 minutes ago
- Yahoo
Amazon Prime Day returns July 8 for a record four-day run
Amazon has officially finalized the dates for this summer's annual Prime Day sale: The online shopping extravaganza will kick off on Tuesday, July 8 and continue through Friday, July 11. That means it will stretch a whopping four full days, or twice as long as previous Prime Day sales. New for 2025 will be "Today's Big Deals," a daily roster of themed offerings that will launch each morning at midnight PT (3 a.m. ET). Despite the longer length, however, Prime Day 2025 otherwise looks to follow the familiar template of Amazon's big summer sale event. Look for a wide array of deals and discounts across the full range of Amazon's inventory, mostly targeted at Amazon Prime subscribers, who get free one- or two-day delivery on most products (along with a variety of other perks) for the $139 per year fee. In the electronics space, Amazon is specifically calling out upcoming deals on its in-house brands, including "the lowest price ever on the Blink Mini 2 two-pack and Ring Battery Doorbell with Ring Floodlight Cam Wired Plus bundle," as well as savings up to half off on Eero routers, the Fire HD 8 Plus tablet and Fire TV Omni TVs. That reinforces the pattern seen in earlier years, when Prime Day generally rivals Black Friday for the best pricing of the year on Amazon hardware. Meanwhile, rival retailers like Walmart, Best Buy, Target and others will almost certainly tee up their own counter-Prime Day sales, which may simply be marketed as early or extended July 4th sales given the fact that Amazon's event picks up right after the Independence Day holiday weekend. While the official start of the sale is still three weeks away, it's worth noting that there are always an array of solid deals at Amazon. Check out our ongoing list of best Amazon deals and best Apple deals, to start. And while you consider your to-do list for Prime Day proper, delve into our evolving list of the best early Prime Day deals, which includes five expert tips, including how best to track the price history of given items so you can see if that deal is really as good as it appears.
CNBC
an hour ago
- CNBC
This retail giant is breaking out. Using options to maximize gains ahead
I recently laid out a bullish thesis for Target , which is poised for a bullish turnaround after shedding 50% of its market value over the past year. Recently breaking out above a critical resistance level, TGT has begun to show early signs of sector and market outperformance. Coupled with its compelling valuation relative to industry peers, this scenario presents an optimal moment to seek bullish exposure using options. Trade timing The timing for adding bullish exposure to TGT is optimal, as the stock has recently broken out above its $100 resistance, marking the end of a three-month sideways consolidation. This is a classic signal of a bearish-to-bullish turnaround. Additionally, this breakout is coupled with improving relative strength compared to the S & P 500, signaling potential for significant upside toward our upside target of $130. Fundamentals TGT trades at a substantial discount relative to its competitors despite robust profitability metrics. Forward PE ratio: 13.5x vs. industry average 18.1x Expected EPS growth: 9.2% vs. industry average 9.0% Expected revenue growth: 1.2% vs. industry average 5.3% Net margins: 4.0% vs. Industry Average 2.4% Bullish thesis Sector catch-up: After losing approximately half its value over the past year, TGT is now primed for a sector catch-up rally, supported by technical breakout momentum and early signs of relative outperformance. Attractive valuation: With competitors Walmart and Costco trading at significant valuation premiums (38x and 50x forward earnings, respectively), TGT's forward PE of 13.5x provides considerable valuation upside. Superior margins: TGT's net margin of 4% exceeds over 75% of its industry peers, highlighting robust operational efficiency and profitability despite the challenging retail environment. Dividends & Cashflow: TGT's 4.3% dividend yield far exceeds its industry which is supported by its significant free cash flow generation. Options trade Given TGT's compelling valuation and technical breakout, I am buying the Aug. 15 $100 Call @ $7.23 Debit. Maximum reward: Unlimited upside above the breakeven price. Maximum risk: $723 per contract if TGT is below $100 at expiration. Breakeven point: $107.23 View this Trade with Updated Prices at OptionsPlay . This options strategy leverages Target's recent breakout, attractive valuation, and leadership to position you for substantial upside potential. With defined risk and unlimited reward above the breakeven price, this trade offers a compelling risk-to-reward scenario for capturing Target's anticipated sector catch-up rally. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Miami Herald
3 hours ago
- Miami Herald
Costco has a nearly secret way members can save more money
If you're someone who pays $65 or $130 a year to get access to Costco, you're no doubt doing it for the savings involved. After all, why pay an annual membership fee to get into Costco when you could instead waltz into your local Walmart or Target and shop to your heart's content? Don't miss the move: Subscribe to TheStreet's free daily newsletter The reason so many people are willing to pay Costco's membership fees is that they get great value in exchange. And that value comes in the form of not just low prices, but also outstanding customer service. Related: Costco's latest price change shocks members There aren't many retailers with a return policy as flexible as Costco's. With very few exceptions, any item that doesn't meet your needs or expectations can be brought back to the store for a complete refund. And if you're worried that returning a jacket you bought a year ago will result in some major customer-service stink eye, think again. Costco wants members to be happy with the products they buy. And the company has no problem processing returns that are reasonable in nature. It's one thing to buy a piece of furniture, use it for two years, and then bring it back to the store on the basis of not being satisfied now that it's worn and tattered. But if you're returning items in store-bought condition long after the fact, there shouldn't be any issue. Image source: Shutterstock While it's nice to be on the receiving end of great customer service, the main value of a Costco membership lies in the savings you can reap. Most of us go through things like milk, eggs, toilet paper, tissues, and cleaning products on a regular basis. Being able to pay less for those items is a great way to stretch your budget at a time when life seems to have gotten obnoxiously expensive. Related: Costco finishes rolling out massive food court menu change Plus, Costco offers savings on more than just groceries and household staples. If you've ever shopped for clothing or outerwear at Costco, you may have saved yourself a small fortune compared to buying similar items at a department store. And if you're someone who has the budget for travel, booking a trip through Costco could save you hundreds of dollars. The savings on a single vacation, in fact, could be enough to cover the cost of a membership for many years, making your $65 or $130 investment more than worth it. Even if you've been a Costco member for many years, there are certain lesser-known benefits you may not be aware of. And one of them could save you a boatload of money. We're talking about Costco Next, and it's a program that gives you access to different suppliers from which you can buy goods directly. Related: Costco CEO admits warehouse club may change its hours You can access Costco Next through the company's website or app. From there, you can browse to see what items are available and purchase the products you want or need directly through Costco's curated list of suppliers. It's that simple. The reason Costco Next offers so much savings is that it cuts out the middleman, so to speak. Because you're buying directly from a vetted supplier, you're actually taking Costco out of the equation. When Costco sells you products at its stores, it's making a profit by charging you more than the cost of acquiring those goods. That doesn't happen with Costco Next. Now you may be wondering: What's in it for Costco? And the answer is simple. First, Costco benefits by providing a service to members that's likely to increase customer loyalty. Secondly, with Costco Next, Costco gains information on member purchasing trends. One thing Costco always strives to do is keep its inventory fresh and exciting. By using data from Costco Next, the company can make strategic decisions on what items to bring into its warehouse club stores. All told, Costco Next is a win-win for everyone involved - Costco, suppliers, and members. It pays to check it out so you can get even more value out of your membership. Maurie Backman owns shares of Costco. Related: Costco quietly pulls popular product, upsets fans The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
