Walmart Marketplace Grapples with Surge in counterfeit goods, Lax Approval Processes
BENTONVILLE, Ark. – Sept. 21, 2025 - Walmart’s online marketplace is facing scrutiny over a rise in counterfeit products and allegations of insufficient vetting of sellers, according to a recent report by PYMNTS.com. The issue has prompted internal concerns about eroding customer trust and damaging the reputation of legitimate vendors.
Former Walmart marketplace investigator, Tiffany Jones, revealed that approval processes for new sellers became increasingly lenient. “It got to a point where they were just like, ‘You know what? Just go ahead and approve everybody,'” Jones said, describing directives from her managers. “They wanted that business, so they were willing to take a chance on it.”
Walmart acknowledged the problem in a July blog post, stating that “fraudulent sellers – who grow savvier, faking credentials and dodging enforcement – erode trust not just in the companies who run these marketplaces, but in the thousands of large and small sellers who act with integrity and seek only to bring value and assortment to those who shop with us.”
In a statement to PYMNTS, Walmart said, “Counterfeiters threaten brands and marketplaces worldwide, undermining trust and integrity. At Walmart, we continuously strengthen our marketplace to protect customers and sellers. Even with over half a billion products on our platform, we take swift, decisive action to remove any counterfeit goods and bad actors who fail to meet our standards.”
The issue at Walmart reflects a broader trend in eCommerce fraud, which PYMNTS reported earlier this year is a “mosaic of threats, each tailored to the operational rhythms of different verticals.” Retailers in the fashion sector are especially vulnerable to “friendly fraud” and false chargebacks, while consumer electronics sellers are battling “SKU inflation” – the manipulation of product listings with inflated reviews to promote counterfeit or low-quality goods.