Walmart reported that, to protect consumers on its third-party marketplace, it leverages advanced technology including Artificial Intelligence, real-time monitoring, and a comprehensive security approach. With over half a billion products offered by external sellers, the company acknowledges that maintaining trust is key in an expanding digital environment. Its strategy combines AI, human verification, and collaboration with public entities to identify and remove malicious actors seeking to exploit the ecosystem.
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How does Walmart use artificial intelligence to eliminate fraudulent sellers?
Walmart has implemented a surveillance system based on AI and machine learning that constantly analyzes listings on its marketplace. This system detects violations such as product counterfeiting, policy breaches, or intellectual property infringements. Based on these findings, the platform takes immediate action: from removing listings to suspending or terminating seller accounts.
These actions are overseen by a dedicated Trust & Safety team, responsible for responding quickly to any anomalies. The combination of automation and human oversight ensures that enforcement measures are both effective and fair.
What other security measures has Walmart adopted in its marketplace?
In addition to using AI, Walmart has implemented a multi-layered compliance system that includes:
- Pre-onboarding verification of sellers, including identity and business documentation checks.
- Category-specific restrictions to control what types of products each merchant can sell.
- Brand protection tools that allow companies to report violations quickly.
- Ongoing seller education about the platform’s rules and standards.
- Customer-focused policies, such as the ability to return marketplace items directly to physical stores.
Trust: essential for eCommerce
Walmart understands that trust is a competitive advantage, which is why it has invested in expanding its online catalog with authentic products, from everyday essentials to premium brands.
The rapid growth of its marketplace — now including secondhand items, collectibles, and collaborations like StockX in the sneaker category — requires solid mechanisms to ensure integrity.
Which institutions is Walmart partnering with to combat online fraud?
Walmart doesn’t act alone. It has strengthened its relationships with regulators and government agencies to fight organized retail crime and the sale of counterfeit goods. Some of its key initiatives include:
- Support for the INFORM Act, enacted in 2023, which mandates greater transparency in marketplaces.
- Advocacy for the CORCA Act, which seeks a coordinated federal response to retail theft.
- Participation in legislative roundtables on the SHOP SAFE Act, focused on curbing the sale of unsafe products.
- Collaboration with the Department of Homeland Security (DHS), the FBI, and Homeland Security Investigations (HSI).
- Data sharing through the Anti-Counterfeiting Exchange, where Walmart shares intelligence on suspicious sellers with other platforms.
Additionally, the company is part of the Marketplace Advisory Council of the International AntiCounterfeiting Coalition (IACC), demonstrating its leadership in secure commerce policy.
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